Does China Lesso Group Holdings Have A Healthy Balance Sheet?
Does China Lesso Group Holdings Have A Healthy Balance Sheet?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says '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 China Lesso Group Holdings Limited (HKG:2128) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
由伯克希爾哈撒韋的Li·芒格支持的外部基金經理Lu直言不諱地說,最大的投資風險不是價格的波動,而是你是否會遭受永久性的資本損失。因此,當你評估一家公司的風險時,聰明的投資者似乎知道債務是一個非常重要的因素。債務通常涉及破產。*我們注意到中國樂購集團控股有限公司(HKG:2128)的資產負債表上確實有債務。但真正的問題是,這筆債務是否會讓公司面臨風險。
What Risk Does Debt Bring?
債務會帶來什麼風險?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. 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, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
一般來說,只有當一家公司無法輕鬆償還債務時,債務才會成為一個真正的問題,無論是通過籌集資金還是用自己的現金流。但在最糟糕的情況下,如果一家公司無法償還債權人的債務,它可能會破產。然而,一種更常見(但仍令人痛苦)的情況是,它必須以低價籌集新的股權資本,從而永久性地稀釋股東。當然,債務的好處是,它往往代表著廉價資本,特別是當它用能夠以高回報率進行再投資的能力取代公司的稀釋時。當考慮一家公司的債務水準時,第一步是把它的現金和債務放在一起考慮。
Check out our latest analysis for China Lesso Group Holdings
查看我們對中國樂視集團控股的最新分析
How Much Debt Does China Lesso Group Holdings Carry?
中國樂視集團控股背負著多少債務?
The image below, which you can click on for greater detail, shows that at June 2023 China Lesso Group Holdings had debt of CN¥22.8b, up from CN¥17.0b in one year. However, it does have CN¥5.64b in cash offsetting this, leading to net debt of about CN¥17.1b.
下面的圖片,你可以點擊查看更多詳細資訊,顯示了截至2023年6月,中國樂視集團控股公司的債務為228億加元,而一年內為170億加元。然而,它確實有56.4億加元的現金抵消了這一點,導致淨債務約為171億加元。他說:
![](https://newsfile.futunn.com/public/NN-PersistNewsContentImage/7781/20231010/0-9668d133ffe4e2501d2b0e889e7ab818-0-c8f51a2a96eba600923cd86b0da58b3f.png/big)
SEHK:2128 Debt to Equity History October 9th 2023
聯交所:2128債轉股歷史2023年10月9日
How Healthy Is China Lesso Group Holdings' Balance Sheet?
中國樂視集團控股的資產負債表有多健康?
According to the last reported balance sheet, China Lesso Group Holdings had liabilities of CN¥21.1b due within 12 months, and liabilities of CN¥17.3b due beyond 12 months. Offsetting these obligations, it had cash of CN¥5.64b as well as receivables valued at CN¥7.63b due within 12 months. So it has liabilities totalling CN¥25.1b more than its cash and near-term receivables, combined.
根據最近一次報告的資產負債表,中國樂購集團控股公司有211億加元的負債在12個月內到期,173億加元的負債在12個月後到期。在抵消這些債務後,該公司有56.4億加元的現金以及價值76.3億加元的應收賬款在12個月內到期。因此,該公司的負債總額為人民幣251億元,比現金和近期應收賬款的總和還要多。他說:
This deficit casts a shadow over the CN¥11.5b company, like a colossus towering over mere mortals. So we definitely think shareholders need to watch this one closely. At the end of the day, China Lesso Group Holdings would probably need a major re-capitalization if its creditors were to demand repayment.
這一赤字給這家115億元的CN公司蒙上了一層陰影,就像一個龐然大物聳立在凡人之上。因此,我們肯定認為股東需要密切關注這一事件。但歸根結底,如果中國樂視集團控股的債權人要求償還,它可能需要進行重大的資本重組。他說:
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.
我們通過查看公司的淨債務除以利息、稅項、折舊和攤銷前收益(EBITDA),並計算其息稅前收益(EBIT)覆蓋利息支出(利息覆蓋)的容易程度,來衡量公司的債務負擔與其盈利能力的關係。通過這種方式,我們既考慮了債務的絕對數量,也考慮了為其支付的利率。
China Lesso Group Holdings has a debt to EBITDA ratio of 3.2 and its EBIT covered its interest expense 5.3 times. This suggests that while the debt levels are significant, we'd stop short of calling them problematic. It is well worth noting that China Lesso Group Holdings's EBIT shot up like bamboo after rain, gaining 57% in the last twelve months. That'll make it easier to manage its debt. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if China Lesso Group 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.
中國樂購集團控股的債務與息稅前利潤之比為3.2倍,息稅前利潤為利息支出的5.3倍。但這表明,儘管債務水準很高,但我們不會說它們有問題。他說,值得注意的是,中國樂購集團控股的息稅前利潤如雨後春筍般迅速增長,在最近12個月中上漲了57%。這將使其更容易管理債務。他說,毫無疑問,我們從資產負債表中瞭解到的債務最多。但最終,該業務未來的盈利能力將決定中國樂視集團控股能否隨著時間的推移加強其資產負債表。所以,如果你著眼於未來,你可以看看這個免費顯示分析師利潤預測的報告。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we always check how much of that EBIT is translated into free cash flow. In the last three years, China Lesso Group Holdings's free cash flow amounted to 30% of its EBIT, less than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
最後,企業需要自由現金流來償還債務;會計利潤只是不能削減這一點。因此,我們總是檢查EBIT中有多少轉化為自由現金流。最近三年,中國樂購集團控股的自由現金流佔其息稅前利潤的30%,低於我們的預期。他說,現金轉換率較低,加大了處理負債的難度。他說: