Is Huafu Fashion (SZSE:002042) Weighed On By Its Debt Load?
Is Huafu Fashion (SZSE:002042) Weighed On By Its Debt Load?
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.' 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. We note that Huafu Fashion Co., Ltd. (SZSE:002042) does have debt on its balance sheet. But is this debt a concern to shareholders?
傳奇基金經理陸杉(受查理·芒格支持)曾說:“最大的投資風險不是價格波動,而是資本是否永久損失。”我們在考慮一家公司的風險時,總是喜歡看看它的債務使用情況,因爲債務超載可能導致災難。我們注意到,華孚時尚股份有限公司(SZSE:002042)確實在其資產負債表上負債。但這些債務是否令股東擔憂呢?
When Is Debt A Problem?
什麼時候負債才是一個問題?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. 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.
債務是幫助企業增長的工具,但如果企業不能償還債權人的債務,那麼它就要任憑債權人擺佈。最終,如果公司無法履行法定義務償還債務,股東可能什麼也得不到。然而,更頻繁但仍然代價昂貴的情況是,公司必須以白菜價格發行股票以永久稀釋股東,以支持其資產負債表。通過替代稀釋,債務可以成爲企業的一種極好工具,特別是那些需要大量資本投資高回報的企業。當我們考慮企業使用債務的時候,我們首先要看現金和債務。
How Much Debt Does Huafu Fashion Carry?
華孚時尚承擔了多少債務?
As you can see below, at the end of March 2024, Huafu Fashion had CN¥8.70b of debt, up from CN¥8.16b a year ago. Click the image for more detail. However, it does have CN¥2.81b in cash offsetting this, leading to net debt of about CN¥5.90b.
正如下圖所示,在2024年3月底,華孚時尚的債務總額爲87億元人民幣,比一年前的81.6億元人民幣增加了。點擊圖片了解更多細節。然而,它確實有28.1億元人民幣的現金抵消這些負債,導致淨負債約爲59億元人民幣。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240601/0-15312a3a5ac144d9a622ec7037cb3b23-0-56c72958ead77b7da43cab18b1aac82d.png/big)
A Look At Huafu Fashion's Liabilities
了解華孚時尚的負債情況
According to the last reported balance sheet, Huafu Fashion had liabilities of CN¥10.2b due within 12 months, and liabilities of CN¥1.13b due beyond 12 months. Offsetting this, it had CN¥2.81b in cash and CN¥1.60b in receivables that were due within 12 months. So it has liabilities totalling CN¥6.93b more than its cash and near-term receivables, combined.
根據最近披露的資產負債表,華孚時尚在12個月內有102億元人民幣的負債,以及11.3億元人民幣的負債到期時間超過12個月。抵銷這些的是,它有28.1億元人民幣的現金和16億元人民幣的應收賬款需要在12個月內到期。因此,其負債總額超過現金和短期應收賬款約69.3億元人民幣。
Given this deficit is actually higher than the company's market capitalization of CN¥6.81b, we think shareholders really should watch Huafu Fashion's debt levels, like a parent watching their child ride a bike for the first time. Hypothetically, extremely heavy dilution would be required if the company were forced to pay down its liabilities by raising capital at the current share price. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Huafu Fashion'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.
考慮到這個赤字真正高於公司市值68.1億元人民幣,我們認爲股東們確實應該像父母第一次看孩子騎自行車一樣關注華孚時尚的債務水平。假設公司被迫以當前股價籌集資本來償還其負債,將需要極大程度的股權稀釋。在分析債務水平時,資產負債表是顯而易見的起點。但是,未來的收入,比任何其他因素都將決定華孚時尚維持健康資產負債表的能力。因此,如果你關注未來,可以查看這份免費報告,展示分析師的利潤預測。
In the last year Huafu Fashion had a loss before interest and tax, and actually shrunk its revenue by 12%, to CN¥13b. We would much prefer see growth.
在過去的一年裏,華孚時尚稅息前虧損,並實際上將其營業收入縮減了12%,至130億元人民幣。我們更希望看到增長。
Caveat Emptor
買方自負。
Not only did Huafu Fashion's revenue slip over the last twelve months, but it also produced negative earnings before interest and tax (EBIT). Indeed, it lost CN¥64m at the EBIT level. Considering that alongside the liabilities mentioned above make us nervous about the company. It would need to improve its operations quickly for us to be interested in it. Not least because it had negative free cash flow of CN¥447m over the last twelve months. So suffice it to say we consider the stock to be risky. 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. These risks can be hard to spot. Every company has them, and we've spotted 3 warning signs for Huafu Fashion (of which 1 is concerning!) you should know about.
華孚時尚不僅在過去的十二個月中收入下滑,而且在息稅前利潤(EBIT)上也出現了負數業績。事實上,它在EBIT水平上虧損了6400萬元人民幣。同時考慮到上述負債,這使我們對公司感到擔憂。它需要迅速改善其運營,以吸引我們的興趣。這還不僅因爲它在過去的十二個月中自由現金流爲負44700萬元人民幣。所以可以說我們認爲這支股票是有風險的。了解負債方面,資產負債表確實提供了很多信息。但是,並不是所有的投資風險都存在於資產負債表中——遠非如此。這些風險可能很難發現。每個公司都有它們,我們已經發現了華孚時尚的三個警示標誌(其中一個令人擔憂!)你應該知道。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果您在所有這些工作之後,更感興趣於擁有堅實資產負債表的快速發展公司,請立即查看我們的淨現金成長股列表。
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