CICT Mobile Communication Technology Co., Ltd. (SHSE:688387) Could Be Less Than A Year Away From Profitability

We feel now is a pretty good time to analyse CICT Mobile Communication Technology Co., Ltd.'s (SHSE:688387) business as it appears the company may be on the cusp of a considerable accomplishment. CICT Mobile Communication Technology Co., Ltd. With the latest financial year loss of CN¥357m and a trailing-twelve-month loss of CN¥553m, the CN¥17b market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on CICT Mobile Communication Technology's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for CICT Mobile Communication Technology

Consensus from 3 of the Chinese Communications analysts is that CICT Mobile Communication Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of CN¥65m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 157% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for CICT Mobile Communication Technology given that this is a high-level summary, however, bear in mind 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 27% 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 too many aspects of CICT Mobile Communication Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – CICT Mobile Communication Technology's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Historical Track Record: What has CICT Mobile Communication 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 CICT Mobile Communication 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com