Is Hua Hong Semiconductor (HKG:1347) A Risky Investment?
Is Hua Hong Semiconductor (HKG:1347) A Risky Investment?
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. As with many other companies Hua Hong Semiconductor Limited (HKG:1347) makes use of debt. But the real question is whether this debt is making the company risky.
传奇基金经理李露(由查理·芒格支持)曾经说过:“最大的投资风险不是价格的波动,而是你是否会遭受永久的资本损失。”因此,当你评估公司的风险时,看来聪明的货币知道债务(通常涉及破产)是一个非常重要的因素。与许多其他公司一样,华虹半导体有限公司(HKG: 1347)也使用债务。但真正的问题是这笔债务是否使公司面临风险。
What Risk Does Debt Bring?
债务会带来什么风险?
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, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.
债务是帮助企业发展的工具,但是如果企业无法还清贷款人,那么债务就任其摆布。在最坏的情况下,如果一家公司无法偿还债权人,它可能会破产。但是,更常见(但仍然令人痛苦)的情况是,它必须以低廉的价格筹集新的股本资本,从而永久稀释股东。当然,许多公司使用债务为增长提供资金,而不会产生任何负面影响。考虑公司的债务水平的第一步是同时考虑其现金和债务。
What Is Hua Hong Semiconductor's Debt?
华虹半导体的债务是多少?
As you can see below, at the end of December 2023, Hua Hong Semiconductor had US$2.10b of debt, up from US$1.91b a year ago. Click the image for more detail. But on the other hand it also has US$5.59b in cash, leading to a US$3.49b net cash position.
如下所示,截至2023年12月底,华虹半导体的债务为21.0亿美元,高于去年同期的19.1亿美元。点击图片查看更多细节。但另一方面,它也有55.9亿美元的现金,净现金状况为34.9亿美元。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240404/0-7b2d6598245c7a7bec215ea375dd555f-0-f8b91434517106d7f4cb34fb6f6a5f77.png/big)
How Healthy Is Hua Hong Semiconductor's Balance Sheet?
华虹半导体的资产负债表有多健康?
We can see from the most recent balance sheet that Hua Hong Semiconductor had liabilities of US$972.4m falling due within a year, and liabilities of US$1.96b due beyond that. On the other hand, it had cash of US$5.59b and US$301.5m worth of receivables due within a year. So it actually has US$2.96b more liquid assets than total liabilities.
我们可以从最新的资产负债表中看出,华虹半导体的负债为9.724亿美元,一年后到期的负债为19.6亿美元。另一方面,它有55.9亿美元的现金和价值3.015亿美元的应收账款将在一年内到期。所以它实际上有29.6亿美元 更多 流动资产超过总负债。
This surplus liquidity suggests that Hua Hong Semiconductor's balance sheet could take a hit just as well as Homer Simpson's head can take a punch. Having regard to this fact, we think its balance sheet is as strong as an ox. Simply put, the fact that Hua Hong Semiconductor has more cash than debt is arguably a good indication that it can manage its debt safely.
这种过剩的流动性表明,华虹半导体的资产负债表可能会受到打击,荷马·辛普森的头也可能受到打击。考虑到这一事实,我们认为其资产负债表像牛一样强劲。简而言之,华虹半导体的现金多于债务这一事实可以说是一个很好的迹象,表明它可以安全地管理债务。
Shareholders should be aware that Hua Hong Semiconductor's EBIT was down 73% last year. If that earnings trend continues then paying off its debt will be about as easy as herding cats on to a roller coaster. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Hua Hong Semiconductor can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
股东应该意识到,华虹半导体的息税前利润去年下降了73%。如果这种盈利趋势继续下去,那么偿还债务就像放猫坐过山车一样容易。在分析债务水平时,资产负债表是显而易见的起点。但最终,该业务的未来盈利能力将决定华虹半导体能否随着时间的推移加强其资产负债表。因此,如果你想看看专业人士的想法,你可能会发现这份关于分析师利润预测的免费报告很有趣。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. Hua Hong Semiconductor may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. During the last three years, Hua Hong Semiconductor burned a lot of cash. While that may be a result of expenditure for growth, it does make the debt far more risky.
但是我们最终的考虑因素也很重要,因为公司无法用纸面利润来偿还债务;它需要冷硬现金。华虹半导体资产负债表上可能有净现金,但研究该业务如何将其利息税前收益(EBIT)转换为自由现金流仍然很有趣,因为这将影响其对债务的需求和管理能力。在过去的三年中,华虹半导体烧掉了大量现金。尽管这可能是增长支出的结果,但它确实使债务风险大大增加。
Summing Up
总结
While we empathize with investors who find debt concerning, you should keep in mind that Hua Hong Semiconductor has net cash of US$3.49b, as well as more liquid assets than liabilities. So we are not troubled with Hua Hong Semiconductor's debt use. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 2 warning signs for Hua Hong Semiconductor that you should be aware of.
虽然我们同情那些认为债务令人担忧的投资者,但您应该记住,华虹半导体的净现金为34.9亿美元,流动资产也多于负债。因此,我们对华虹半导体的债务使用并不感到困扰。在分析债务水平时,资产负债表是显而易见的起点。但归根结底,每家公司都可以控制资产负债表之外存在的风险。例如,我们已经确定了华虹半导体的两个警告信号,你应该注意这些信号。
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.
当然,如果你是那种喜欢在没有债务负担的情况下购买股票的投资者,那么请立即查看我们的独家净现金增长股票清单。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。