Shanghai MicroPort MedBot (Group) Co., Ltd. (HKG:2252): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Shanghai MicroPort MedBot (Group) Co., Ltd.'s (HKG:2252) future prospects. Shanghai MicroPort MedBot (Group) Co., Ltd. The HK$17b market-cap company announced a latest loss of CN¥642m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Shanghai MicroPort MedBot (Group)'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.

According to the 3 industry analysts covering Shanghai MicroPort MedBot (Group), the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of CN¥77m in 2026. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 112% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Shanghai MicroPort MedBot (Group)'s growth isn’t the focus of this broad overview, 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.

Check out our latest analysis for Shanghai MicroPort MedBot (Group)

One thing we would like to bring into light with Shanghai MicroPort MedBot (Group) is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Shanghai MicroPort MedBot (Group) to cover in one brief article, but the key fundamentals for the company can all be found in one place – Shanghai MicroPort MedBot (Group)'s company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

1. Valuation: What is Shanghai MicroPort MedBot (Group) 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 Shanghai MicroPort MedBot (Group) 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 Shanghai MicroPort MedBot (Group)’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.