Analysts Expect Shanghai HeartCare Medical Technology Corporation Limited (HKG:6609) To Breakeven Soon

We feel now is a pretty good time to analyse Shanghai HeartCare Medical Technology Corporation Limited's (HKG:6609) business as it appears the company may be on the cusp of a considerable accomplishment. Shanghai HeartCare Medical Technology Corporation Limited develops, manufacture, and sells neuro-interventional medical devices. With the latest financial year loss of CN¥200m and a trailing-twelve-month loss of CN¥188m, the HK$791m market-cap company alleviated its loss by moving closer towards its target of 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

Shanghai HeartCare Medical Technology is bordering on breakeven, according to the 2 Hong Kong Medical Equipment analysts. They expect the company to post a final loss in 2023, before turning a profit of CN¥1.0m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? 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. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Shanghai HeartCare Medical Technology given that this is a high-level summary, but, take into account that generally 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 quite unusual for a cash-burning growth 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 Shanghai HeartCare Medical Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Shanghai HeartCare Medical Technology's company page on Simply Wall St. We've also compiled a list of key factors 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.