With the business potentially at an important milestone, we thought we'd take a closer look at CICT Mobile Communication Technology Co., Ltd.'s (SHSE:688387) future prospects. CICT Mobile Communication Technology Co., Ltd. The CN¥23b market-cap company announced a latest loss of CN¥370m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on CICT Mobile Communication Technology's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 3 of the Chinese Communications analysts is that CICT Mobile Communication Technology is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of CN¥65m 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 138% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of CICT Mobile Communication Technology's upcoming projects, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we'd like to point out is that The company has managed its capital judiciously, with debt making up 30% 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 too many aspects of CICT Mobile Communication Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – CICT Mobile Communication Technology's company page on Simply Wall St. We've also put together a list of important factors you should further research:

1. Historical Track Record: What has CICT Mobile Communication 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 CICT Mobile Communication 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.