Loss-Making Ping An Healthcare and Technology Company Limited (HKG:1833) Expected To Breakeven In The Medium-Term

With the business potentially at an important milestone, we thought we'd take a closer look at Ping An Healthcare and Technology Company Limited's (HKG:1833) future prospects. Ping An Healthcare and Technology Company Limited, together with its subsidiaries, operates an online healthcare services platform in China. The HK$14b market-cap company’s loss lessened since it announced a CN¥608m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥390m, as it approaches breakeven. The most pressing concern for investors is Ping An Healthcare and Technology's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Ping An Healthcare and Technology

Ping An Healthcare and Technology is bordering on breakeven, according to the 15 Hong Kong Consumer Retailing analysts. They expect the company to post a final loss in 2024, before turning a profit of CN¥46m in 2025. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 55%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Ping An Healthcare and Technology given that this is a high-level summary, though, bear in mind that by and large 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 judiciously, with debt making up 0.08% 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:

This article is not intended to be a comprehensive analysis on Ping An Healthcare and Technology, so if you are interested in understanding the company at a deeper level, take a look at Ping An Healthcare and Technology's company page on Simply Wall St. We've also put together a list of important aspects you should further examine:

1. Valuation: What is Ping An Healthcare and Technology worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Ping An Healthcare and Technology is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Ping An Healthcare and 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.