Beijing Airdoc Technology Co., Ltd. (HKG:2251) Is About To Turn The Corner

We feel now is a pretty good time to analyse Beijing Airdoc Technology Co., Ltd.'s (HKG:2251) business as it appears the company may be on the cusp of a considerable accomplishment. Beijing Airdoc Technology Co., Ltd. provides artificial intelligence (AI) empowered retina-based early detection, diagnosis, and health risk assessment solutions for medical institutions, consumer healthcare environments, and eye health management settings in Mainland China and internationally. The company’s loss has recently broadened since it announced a CN¥133m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥176m, moving it further away from breakeven. As path to profitability is the topic on Beijing Airdoc 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 Beijing Airdoc Technology

Beijing Airdoc Technology is bordering on breakeven, according to the 2 Hong Kong Healthcare Services analysts. They expect the company to post a final loss in 2024, before turning a profit of CN¥3.2m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 93% year-on-year, on average, which is extremely buoyant. 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 Beijing Airdoc Technology given that this is a high-level summary, though, take into account that typically a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that Beijing Airdoc Technology has no debt on its balance sheet, which is quite unusual for a cash-burning healthcare tech company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Beijing Airdoc Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Beijing Airdoc Technology's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. Valuation: What is Beijing Airdoc 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 Beijing Airdoc 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 Beijing Airdoc 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.