Analysts Expect Beijing Kaiwen Education Technology Co., Ltd (SZSE:002659) To Breakeven Soon

We feel now is a pretty good time to analyse Beijing Kaiwen Education Technology Co., Ltd's (SZSE:002659) business as it appears the company may be on the cusp of a considerable accomplishment. Beijing Kaiwen Education Technology Co., Ltd operates schools in China. The CN¥2.9b market-cap company’s loss lessened since it announced a CN¥50m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥46m, as it approaches breakeven. Many investors are wondering about the rate at which Beijing Kaiwen Education Technology will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Beijing Kaiwen Education Technology

According to the 3 industry analysts covering Beijing Kaiwen Education Technology, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of CN¥5.7m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 118%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Beijing Kaiwen Education Technology's upcoming projects, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 30% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Beijing Kaiwen Education Technology which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Beijing Kaiwen Education Technology, take a look at Beijing Kaiwen Education Technology's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Historical Track Record: What has Beijing Kaiwen Education Technology's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Beijing Kaiwen Education Technology's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.