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$20b market-cap company posted a loss in its most recent financial year of CN¥608m and a latest trailing-twelve-month loss of CN¥390m shrinking the gap between loss and breakeven. As path to profitability is the topic on Ping An Healthcare and 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.

View our latest analysis for Ping An Healthcare and Technology

According to the 18 industry analysts covering Ping An Healthcare and Technology, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of CN¥67m in 2025. The company is therefore projected to breakeven around 2 years 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 64% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of Ping An Healthcare and Technology's upcoming projects, however, keep in mind that generally 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 judiciously, 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 compiled a list of important factors you should further research:

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.