We Might See A Profit From Ping An Healthcare and Technology Company Limited (HKG:1833) Soon

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$14b market-cap company posted a loss in its most recent financial year of CN¥323m and a latest trailing-twelve-month loss of CN¥21m shrinking the gap between loss and breakeven. As path to profitability is the topic on Ping An Healthcare and Technology's investors mind, we've decided to gauge market sentiment. 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

Consensus from 14 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 2023, before generating positive profits of CN¥121m in 2024. So, the company is predicted to breakeven approximately a year 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 56%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Ping An Healthcare and Technology's upcoming projects, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that 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:

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 compiled a list of essential 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.