Ping An Healthcare and Technology Company Limited's (HKG:1833) Shift From Loss To Profit

We feel now is a pretty good time to analyse Ping An Healthcare and Technology Company Limited's (HKG:1833) business as it appears the company may be on the cusp of a considerable accomplishment. Ping An Healthcare and Technology Company Limited, together with its subsidiaries, operates an online healthcare services platform in China. The HK$13b market-cap company announced a latest loss of CN¥323m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Ping An Healthcare and 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.

See our latest analysis for Ping An Healthcare and Technology

Consensus from 13 of the Hong Kong Consumer Retailing analysts is that Ping An Healthcare and Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥5.6m in 2025. The company is therefore projected to breakeven just over a year from today. 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 41%, which is rather optimistic! 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, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, 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:

There are too many aspects of Ping An Healthcare and Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Ping An Healthcare and Technology's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

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.

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