With the business potentially at an important milestone, we thought we'd take a closer look at REPT BATTERO Energy Co., Ltd.'s (HKG:666) future prospects. REPT BATTERO Energy Co., Ltd. engages in the design, research and development, production, and sale of lithium-ion battery products in China and internationally. With the latest financial year loss of CN¥1.5b and a trailing-twelve-month loss of CN¥1.2b, the HK$34b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is REPT BATTERO Energy's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

REPT BATTERO Energy is bordering on breakeven, according to the 4 Hong Kong Electrical analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥709m in 2026. So, the company is predicted to breakeven approximately 2 years from now. 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 110%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving REPT BATTERO Energy's growth isn't the focus of this broad overview, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with REPT BATTERO Energy is its relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in REPT BATTERO Energy's case is 90%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of REPT BATTERO Energy 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 REPT BATTERO Energy, take a look at REPT BATTERO Energy's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Valuation: What is REPT BATTERO Energy 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 REPT BATTERO Energy 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 REPT BATTERO Energy'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.