Analysts Expect Breakeven For Robosense Technology Co., Ltd (HKG:2498) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Robosense Technology Co., Ltd's (HKG:2498) future prospects. Robosense Technology Co., Ltd, an investment holding company, provides LiDAR and perception solutions in the People’s Republic of China, the United States, and internationally. The HK$20b market-cap company posted a loss in its most recent financial year of CN¥482m and a latest trailing-twelve-month loss of CN¥364m shrinking the gap between loss and breakeven. The most pressing concern for investors is Robosense Technology's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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According to the 21 industry analysts covering Robosense Technology, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of CN¥97m in 2026. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 54%, 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 Robosense Technology's growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Robosense Technology

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 8.0% 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:

There are key fundamentals of Robosense 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 Robosense Technology, take a look at Robosense Technology's company page on Simply Wall St. We've also put together a list of key factors you should look at:

1. Valuation: What is Robosense 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 Robosense 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 Robosense 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.