With the business potentially at an important milestone, we thought we'd take a closer look at iMotion Automotive Technology (Suzhou) Co., Ltd.'s (HKG:1274) future prospects. iMotion Automotive Technology (Suzhou) Co., Ltd. The HK$6.2b market-cap company announced a latest loss of CN¥195m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which iMotion Automotive Technology (Suzhou) will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to the 2 industry analysts covering iMotion Automotive Technology (Suzhou), the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥42m in 2025. Therefore, the company is expected to breakeven just over a year from today. 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 49% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving iMotion Automotive Technology (Suzhou)'s growth isn't the focus of this broad overview, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one aspect worth mentioning. The company has managed its capital prudently, with debt making up 20% 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 iMotion Automotive Technology (Suzhou) to cover in one brief article, but the key fundamentals for the company can all be found in one place – iMotion Automotive Technology (Suzhou)'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 iMotion Automotive Technology (Suzhou)'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 iMotion Automotive Technology (Suzhou)'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com