HK Electric Investments and HK Electric Investments (HKG:2638) Has A Somewhat Strained Balance Sheet
HK Electric Investments and HK Electric Investments (HKG:2638) Has A Somewhat Strained Balance Sheet
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that HK Electric Investments and HK Electric Investments Limited (HKG:2638) does use debt in its business. But the more important question is: how much risk is that debt creating?
傳奇基金經理李錄(得到查理·芒格的支持)曾經說過:“最大的投資風險不是價格的波動,而是你是否會承受資本的永久損失。”因此,當你考慮任何給定的股票有多大風險時,你需要考慮債務,因爲過多的債務可能會使公司破產。我們可以看到,港燈-ss在業務中確實使用了債務。但更重要的問題是:這些債務造成了多大的風險?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. If things get really bad, the lenders can take control of the business. 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. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
當企業無法通過自由現金流或以有吸引力的價格籌集資本來輕鬆滿足這些義務時,債務和其他負債將對企業構成風險。如果情況變得非常糟糕,放貸人便可以掌控企業。雖然這種情況並不常見,但我們經常看到企業由於受債權人的強迫而以低於正常價格發行股票,以至於無法彌補負債。當然,也有很多公司使用債務來資助增長,而沒有任何負面後果。當考慮一個企業使用多少債務時,首先要做的是將其現金和債務一起看。
What Is HK Electric Investments and HK Electric Investments's Debt?
港燈-ss的債務是什麼?
As you can see below, HK Electric Investments and HK Electric Investments had HK$50.2b of debt, at December 2023, which is about the same as the year before. You can click the chart for greater detail. Net debt is about the same, since the it doesn't have much cash.
正如您下面所看到的,港燈-ss在2023年12月有502億元的債務,與前一年大致相同。您可以單擊圖表以獲得更詳細的信息。由於幾乎沒有現金,淨債務大致相同。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240528/0-1292288fc05d86cb303230353c6e14c9-0-2888d25aa74113ca33326ee0c10e4633.png/big)
How Strong Is HK Electric Investments and HK Electric Investments' Balance Sheet?
港燈-ss的資產負債表有多健全?
According to the last reported balance sheet, HK Electric Investments and HK Electric Investments had liabilities of HK$5.12b due within 12 months, and liabilities of HK$64.4b due beyond 12 months. Offsetting this, it had HK$114.0m in cash and HK$1.38b in receivables that were due within 12 months. So its liabilities total HK$68.1b more than the combination of its cash and short-term receivables.
根據最近的資產負債表,港燈-ss在12個月內有512億港元的應付短期債務和644億港元的長期債務。與此相抵,它擁有1.14億港元的現金和1.38億港元的應收賬款。因此,它的負債總額比現金和短期應收賬款的組合多出681億港元。這種赤字對428億港元的公司自身造成了沉重打擊,就像一個孩子揹着一大堆書包、體育器材和小號的包袱一樣。因此,我們絕對認爲股東需要密切關注這一點。畢竟,如果港燈-ss今天必須償還債務,它很可能需要進行重大再融資。
The deficiency here weighs heavily on the HK$42.8b company itself, as if a child were struggling under the weight of an enormous back-pack full of books, his sports gear, and a trumpet. So we definitely think shareholders need to watch this one closely. After all, HK Electric Investments and HK Electric Investments would likely require a major re-capitalisation if it had to pay its creditors today.
以6.0的淨債務/ EBITDA比率來看,可以說港燈-ss確實有大量債務。但好消息是,根據利息覆蓋率相當令人放心,達到了3.9倍,表明它可以負責地履行其義務。然而,一個彌補因素是,港燈-ss在過去12個月中將其EBIt提高了14%,提高了其處理債務的能力。毫無疑問,我們從資產負債表中了解到大部分關於債務的信息。但是,最終確定港燈-ss能否保持健康的資產負債表的能力的主要取決於未來的盈利。因此,如果您想了解專業人士的看法,您可能會發現有關分析師利潤預測的免費報告很有趣。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我們通過將公司的淨債務與其息稅折舊攤銷前利潤(EBITDA)相除,並計算其息稅前利潤(EBIT)如何覆蓋其利息費用(利息覆蓋率)來衡量公司的債務負擔相對於其盈利能力。因此,我們同時考慮債務的絕對數量以及所支付的利率。
With a net debt to EBITDA ratio of 6.0, it's fair to say HK Electric Investments and HK Electric Investments does have a significant amount of debt. But the good news is that it boasts fairly comforting interest cover of 3.9 times, suggesting it can responsibly service its obligations. However, one redeeming factor is that HK Electric Investments and HK Electric Investments grew its EBIT at 14% over the last 12 months, boosting its ability to handle its debt. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine HK Electric Investments and HK Electric Investments's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
最後,企業只能用現金而不是會計利潤償還債務。因此,檢查由自由現金流支持的EBIt數量是值得的。在最近的三年中,港燈-ss的自由現金流佔其EBIt的28%,這比我們預期的要弱。在償還債務方面,這並不好。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So it's worth checking how much of that EBIT is backed by free cash flow. Looking at the most recent three years, HK Electric Investments and HK Electric Investments recorded free cash flow of 28% of its EBIT, which is weaker than we'd expect. That's not great, when it comes to paying down debt.
坦率地說,無論是港燈-ss的總負債水平還是基於EBITDA的管理債務的歷史記錄,使我們對其債務水平感到不太舒適。但好消息是,它的EBIt增長率是一個好跡象,使我們更加樂觀。值得注意的是,港燈-ss位於公用事業行業,該行業通常被認爲是相當保守的。總的來說,我們認爲港燈-ss的資產負債表對企業來說確實是一個風險。因此,我們對股票持謹慎態度,並認爲股東應密切關注其流動性。當然,我們從資產負債表中了解到大部分關於債務的信息。然而,並非所有的投資風險都存在於資產負債表中 - 相反,從它所提供的信息上來看,港燈-ss存在2個警告,並且我們認爲您應該知道這1個重要的警告。
Our View
我們的觀點
To be frank both HK Electric Investments and HK Electric Investments's level of total liabilities and its track record of managing its debt, based on its EBITDA, make us rather uncomfortable with its debt levels. But on the bright side, its EBIT growth rate is a good sign, and makes us more optimistic. It's also worth noting that HK Electric Investments and HK Electric Investments is in the Electric Utilities industry, which is often considered to be quite defensive. Overall, it seems to us that HK Electric Investments and HK Electric Investments's balance sheet is really quite a risk to the business. For this reason we're pretty cautious about the stock, and we think shareholders should keep a close eye on its liquidity. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. For example HK Electric Investments and HK Electric Investments has 2 warning signs (and 1 which is significant) we think you should know about.
港燈-ss的總負債水平及其根據其EBITDA管理債務的記錄使我們對其債務水平感到不太舒適。但值得欣慰的是,它的EBIt增長率是一個好跡象,使我們更加樂觀。需要注意的是,港燈-ss位於公用股行業,該行業通常被認爲是相當保守的。總的來說,我們認爲港燈-ss的資產負債表真的對企業是一個風險。因此,我們對股票持謹慎態度,並認爲股東應密切關注其流動性。當然,我們從資產負債表中了解到大部分關於債務的信息。但是,並非所有的投資風險都存在於資產負債表中——事實上,港燈-ss存在2個警告標誌(其中1個非常重要),我們認爲您應該知道這些信息。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
當然,如果您是那種喜歡購買沒有債務負擔的股票的投資者,那麼不要猶豫,立即發現我們獨家的淨現金增長股票列表。
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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.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。