CICT Mobile Communication Technology Co., Ltd. (SHSE:688387) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CICT Mobile Communication Technology Co., Ltd. The CN¥19b market-cap company posted a loss in its most recent financial year of CN¥357m and a latest trailing-twelve-month loss of CN¥346m shrinking the gap between loss and breakeven. As path to profitability is the topic on CICT Mobile Communication Technology's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

CICT Mobile Communication Technology is bordering on breakeven, according to some Chinese Communications analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of CN¥6.0m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 112% is expected, which is rather optimistic! 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, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that The company has managed its capital judiciously, with debt making up 26% 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 CICT Mobile Communication 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 CICT Mobile Communication Technology, take a look at CICT Mobile Communication Technology's company page on Simply Wall St. We've also put together a list of relevant aspects 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.