We feel now is a pretty good time to analyse Leascend Technology Co., Ltd's (SZSE:300051) business as it appears the company may be on the cusp of a considerable accomplishment. Leascend Technology Co., Ltd provides enterprise information services in China. The CN¥2.8b market-cap company's loss lessened since it announced a CN¥32m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥31m, as it approaches breakeven. The most pressing concern for investors is Leascend Technology's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Expectations from some of the Chinese IT analysts is that Leascend Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of CN¥149m in 2024. The company is therefore projected to breakeven around 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 118% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Leascend Technology's growth isn't the focus of this broad overview, but, take into account 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 judiciously, with debt making up 34% 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 Leascend Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Leascend Technology's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. Historical Track Record: What has Leascend 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 Leascend 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.