Is Asia Cement (China) Holdings (HKG:743) Using Too Much Debt?
Is Asia Cement (China) Holdings (HKG:743) Using Too Much Debt?
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 seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We note that Asia Cement (China) Holdings Corporation (HKG:743) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
傳奇基金經理李錄(受查理·芒格支持)曾經說過:「最大的投資風險不是價格的波動,而是你是否會遭受資本的永久損失。」因此,聰明的資金知道,債務(通常涉及破產)是評估公司風險程度時非常重要的因素。我們注意到中國水泥控股(亞洲)有限公司(HKG:743)資產負債表上確實存在債務。但真正的問題是,這筆債務是否讓公司變得風險重重。
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
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. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.
債務是幫助企業成長的工具,但如果企業無法償還貸款,則它存在於貸款人的掌握之中。在最壞的情況下,公司如果無法償還債權人的債務,就會破產。然而,更常見(但仍然痛苦)的情況是,它必須以低價籌集新的股本資本,從而永久性地稀釋股東的權益。當然,債務可能是企業中重要的工具,特別是對於資本重的企業而言。在我們檢查債務水平時,我們首先考慮現金和債務水平的組合。
How Much Debt Does Asia Cement (China) Holdings Carry?
亞洲水泥(中國)控股的債務有多少?
As you can see below, Asia Cement (China) Holdings had CN¥973.0m of debt at June 2024, down from CN¥1.67b a year prior. However, it does have CN¥8.79b in cash offsetting this, leading to net cash of CN¥7.82b.
正如下面所示,2024年6月,中國水泥(中國)控股的債務爲97300萬人民幣,低於一年前的16.7億人民幣。然而,它確實有87.9億人民幣的現金來抵消這個債務,導致淨現金達到78.2億人民幣。
How Healthy Is Asia Cement (China) Holdings' Balance Sheet?
亞泰水泥(中國)控股的資產負債表有多健康?
We can see from the most recent balance sheet that Asia Cement (China) Holdings had liabilities of CN¥1.98b falling due within a year, and liabilities of CN¥598.7m due beyond that. On the other hand, it had cash of CN¥8.79b and CN¥808.9m worth of receivables due within a year. So it actually has CN¥7.02b more liquid assets than total liabilities.
我們可以從最近的資產負債表中看到,亞泰水泥(中國)控股有198億人民幣的一年內到期的負債,以及59870萬人民幣的長期負債。 另一方面,它擁有87.9億人民幣的現金和80890萬人民幣的應收款項,一年內到期。 所以實際上它比總負債多了70.2億人民幣的流動資產。
This excess liquidity is a great indication that Asia Cement (China) Holdings' balance sheet is almost as strong as Fort Knox. Having regard to this fact, we think its balance sheet is as strong as an ox. Succinctly put, Asia Cement (China) Holdings boasts net cash, so it's fair to say it does not have a heavy debt load! When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Asia Cement (China) Holdings can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
這種過剩的流動性表明亞泰水泥(中國)控股的資產負債表幾乎和美國黃金庫一樣強大。鑑於這一事實,我們認爲它的資產負債表和牛一樣堅固。簡而言之,亞泰水泥(中國)控股擁有淨現金,所以可以說它沒有沉重的債務負擔!在分析債務水平時,資產負債表顯然是開始的地方。但最終業務的未來盈利能力將決定亞泰水泥(中國)控股是否能夠隨着時間加強其資產負債表。因此,如果你專注於未來,你可以查看這份顯示分析師利潤預測的免費報告。
In the last year Asia Cement (China) Holdings had a loss before interest and tax, and actually shrunk its revenue by 31%, to CN¥6.0b. That makes us nervous, to say the least.
在過去一年裏,亞泰水泥(中國)控股在利息和稅前虧損,並實際上將營業收入減少了31%億人民幣。這讓我們至少感到緊張。
So How Risky Is Asia Cement (China) Holdings?
那麼亞泰水泥(中國)控股有多大風險?
While Asia Cement (China) Holdings lost money on an earnings before interest and tax (EBIT) level, it actually generated positive free cash flow CN¥369m. So taking that on face value, and considering the net cash situation, we don't think that the stock is too risky in the near term. The next few years will be important as the business matures. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example Asia Cement (China) Holdings has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
儘管亞泰水泥(中國)控股在利息和稅前收益(EBIT)級別上虧損,但實際上產生了正的自由現金流36900萬人民幣。因此,就其表面價值而言,並考慮淨現金狀況,我們認爲股票在短期內不太具有風險。未來幾年將是業務成熟的重要時期。資產負債表顯然是你分析債務時要關注的領域。然而,並非所有的投資風險都存在於資產負債表之內-遠非如此。例如,亞泰水泥(中國)控股有2個警示標誌(以及1個不應忽視的警示標誌),我們認爲你應該知道。
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.
說到底,有時候更容易集中精力關注根本不需要債務的公司。讀者可以免費訪問零淨債務增長股票列表。
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