Ping An Healthcare and Technology Company Limited (HKG:1833) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Ping An Healthcare and Technology Company Limited, together with its subsidiaries, operates an online healthcare services platform in China. The HK$14b market-cap company announced a latest loss of CN¥323m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which Ping An Healthcare and Technology 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.

Consensus from 14 of the Hong Kong Consumer Retailing analysts is that Ping An Healthcare and Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥93m in 2026. So, the company is predicted to breakeven approximately 2 years 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 42%, which is rather optimistic! 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 Ping An Healthcare and Technology given that this is a high-level summary, but, keep in mind 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 0.08% 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 Ping An Healthcare and 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 Ping An Healthcare and Technology, take a look at Ping An Healthcare and Technology's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is Ping An Healthcare and 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 Ping An Healthcare and 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 Ping An Healthcare and 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.