Kingdee International Software Group Company Limited (HKG:268) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kingdee International Software Group Company Limited, an investment holding company, engages in the enterprise resource planning business. With the latest financial year loss of CN¥389m and a trailing-twelve-month loss of CN¥316m, the HK$33b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Kingdee International Software Group'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.

Check out our latest analysis for Kingdee International Software Group

According to the 25 industry analysts covering Kingdee International Software Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of CN¥283m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 57% year-on-year, on average, 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 Kingdee International Software Group given that this is a high-level summary, though, 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.

Before we wrap up, there's one aspect worth mentioning. The company has managed its capital prudently, with debt making up 9.9% 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:

This article is not intended to be a comprehensive analysis on Kingdee International Software Group, so if you are interested in understanding the company at a deeper level, take a look at Kingdee International Software Group's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is Kingdee International Software Group 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 Kingdee International Software Group 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 Kingdee International Software Group'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.