We Think Ningbo Huaxiang Electronic (SZSE:002048) Can Manage Its Debt With Ease
We Think Ningbo Huaxiang Electronic (SZSE:002048) Can Manage Its Debt With Ease
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, Ningbo Huaxiang Electronic Co., Ltd. (SZSE:002048) does carry debt. But should shareholders be worried about its use of debt?
霍華德·馬克斯說得好,他說的不是擔心股價的波動,而是 “永久損失的可能性是我擔心的風險... 也是我認識的每位實際投資者所擔心的風險。”當我們思考一家公司的風險有多大時,我們總是喜歡考慮其債務的用途,因爲債務過載可能導致破產。重要的是,寧波華翔電子有限公司(深圳證券交易所:002048)確實有債務。但是,股東是否應該擔心其債務的使用?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
債務可以幫助企業,直到企業難以償還債務,無論是新資本還是自由現金流。最終,如果公司無法履行償還債務的法律義務,股東可能會一無所獲。儘管這種情況並不常見,但我們經常會看到負債公司永久稀釋股東,因爲貸款人迫使他們以不良价格籌集資金。但是,通過取代稀釋,債務可以成爲需要資本以高回報率投資增長的企業的極好工具。當我們考慮公司使用債務時,我們首先將現金和債務放在一起考慮。
What Is Ningbo Huaxiang Electronic's Net Debt?
寧波華翔電子的淨負債是多少?
The image below, which you can click on for greater detail, shows that at September 2023 Ningbo Huaxiang Electronic had debt of CN¥1.49b, up from CN¥746.2m in one year. But it also has CN¥3.01b in cash to offset that, meaning it has CN¥1.53b net cash.
您可以點擊下圖查看更多詳情,該圖片顯示,截至2023年9月,寧波華翔電子的債務爲14.9億元人民幣,高於一年內的7.462億元人民幣。但它也有30.1億元的現金來抵消這一點,這意味着它的淨現金爲15.3億元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240319/0-271c59d52aa9590dc9ef510e3f72b17a-0-6a71d85d5d6b316fc343310af96bdaa5.png/big)
How Healthy Is Ningbo Huaxiang Electronic's Balance Sheet?
寧波華翔電子的資產負債表有多健康?
The latest balance sheet data shows that Ningbo Huaxiang Electronic had liabilities of CN¥10.3b due within a year, and liabilities of CN¥1.87b falling due after that. Offsetting these obligations, it had cash of CN¥3.01b as well as receivables valued at CN¥7.45b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥1.69b.
最新的資產負債表數據顯示,寧波華翔電子有一年內到期的103億元人民幣的負債,18.7億元人民幣的負債在此之後到期。除了這些債務外,它還有30.1億元人民幣的現金以及價值74.5億元人民幣的應收賬款將在12個月內到期。因此,其負債超過其現金和(短期)應收賬款總額16.9億元人民幣。
Of course, Ningbo Huaxiang Electronic has a market capitalization of CN¥10.6b, so these liabilities are probably manageable. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward. While it does have liabilities worth noting, Ningbo Huaxiang Electronic also has more cash than debt, so we're pretty confident it can manage its debt safely.
當然,寧波華翔電子的市值爲106億元人民幣,因此這些負債可能是可以控制的。但是,有足夠的負債,我們肯定會建議股東今後繼續監督資產負債表。儘管寧波華翔電子確實有值得注意的負債,但其現金也多於債務,因此我們非常有信心它可以安全地管理債務。
In addition to that, we're happy to report that Ningbo Huaxiang Electronic has boosted its EBIT by 30%, thus reducing the spectre of future debt repayments. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Ningbo Huaxiang Electronic's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
除此之外,我們很高興地向大家報告,寧波華翔電子已將其息稅前利潤提高了30%,從而減少了對未來債務償還的擔憂。資產負債表顯然是分析債務時需要關注的領域。但是,未來的收益比什麼都更能決定寧波華翔電子未來保持健康資產負債表的能力。因此,如果您專注於未來,可以查看這份顯示分析師利潤預測的免費報告。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Ningbo Huaxiang Electronic has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. During the last three years, Ningbo Huaxiang Electronic produced sturdy free cash flow equating to 58% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
但是我們最終的考慮因素也很重要,因爲公司無法用紙面利潤來償還債務;它需要冷硬現金。儘管寧波華翔電子的資產負債表上有淨現金,但仍值得一看其將息稅前收益(EBIT)轉換爲自由現金流的能力,以幫助我們了解其建立(或侵蝕)現金餘額的速度有多快。在過去三年中,寧波華翔電子產生了穩健的自由現金流,相當於其息稅前利潤的58%,與我們的預期差不多。這種冷硬現金意味着它可以在需要時減少債務。
Summing Up
總結
While Ningbo Huaxiang Electronic does have more liabilities than liquid assets, it also has net cash of CN¥1.53b. And it impressed us with its EBIT growth of 30% over the last year. So we don't think Ningbo Huaxiang Electronic's use of debt is risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. We've identified 1 warning sign with Ningbo Huaxiang Electronic , and understanding them should be part of your investment process.
儘管寧波華翔電子的負債確實超過了流動資產,但其淨現金也爲15.3億元人民幣。它的息稅前利潤比去年增長了30%,給我們留下了深刻的印象。因此,我們認爲寧波華翔電子使用債務沒有風險。毫無疑問,我們從資產負債表中學到的關於債務的知識最多。但歸根結底,每家公司都可以控制資產負債表之外存在的風險。我們已經向寧波華翔電子確定了一個警告信號,我們知道它們應該是您投資過程的一部分。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
當一切都說完之後,有時更容易將注意力集中在甚至不需要債務的公司上。讀者現在可以100%免費訪問淨負債爲零的成長型股票清單。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。