Analysts Are Optimistic We'll See A Profit From Shanghai HeartCare Medical Technology Corporation Limited (HKG:6609)

Shanghai HeartCare Medical Technology Corporation Limited (HKG:6609) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Shanghai HeartCare Medical Technology Corporation Limited researches, develops, manufacture, and sells neuro-interventional medical devices in Mainland China. The HK$929m market-cap company posted a loss in its most recent financial year of CN¥94m and a latest trailing-twelve-month loss of CN¥45m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Shanghai HeartCare Medical Technology will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Shanghai HeartCare Medical Technology

Consensus from 2 of the Hong Kong Medical Equipment analysts is that Shanghai HeartCare Medical Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥37m in 2025. Therefore, the company is expected to breakeven roughly 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 112%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Shanghai HeartCare Medical Technology's growth isn’t the focus of this broad overview, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Shanghai HeartCare Medical Technology currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Shanghai HeartCare Medical Technology which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Shanghai HeartCare Medical Technology, take a look at Shanghai HeartCare Medical Technology's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

1. Historical Track Record: What has Shanghai HeartCare Medical Technology's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Shanghai HeartCare Medical 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.