Breakeven Is Near for Super Hi International Holding Ltd. (HKG:9658)

Super Hi International Holding Ltd. (HKG:9658) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Super Hi International Holding Ltd., an investment holding company, operates Haidilao branded Chinese cuisine restaurants in Asia, North America, and internationally. The HK$7.6b market-cap company announced a latest loss of US$41m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on Super Hi International Holding'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.

View our latest analysis for Super Hi International Holding

Consensus from 2 of the Hong Kong Hospitality analysts is that Super Hi International Holding is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$23m in 2023. The company is therefore projected to breakeven around 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 77%, which signals high confidence from analysts. 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 Super Hi International Holding's upcoming projects, though, take into account 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 judiciously, with debt making up 0.2% 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 Super Hi International Holding, so if you are interested in understanding the company at a deeper level, take a look at Super Hi International Holding's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:

1. Valuation: What is Super Hi International Holding 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 Super Hi International Holding 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 Super Hi International Holding’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.