Robosense Technology Co., Ltd (HKG:2498) Has Found A Path To Profitability

Robosense Technology Co., Ltd (HKG:2498) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Robosense Technology Co., Ltd, an investment holding company, provides LiDAR and perception solutions in the People’s Republic of China and internationally. With the latest financial year loss of CN¥482m and a trailing-twelve-month loss of CN¥383m, the HK$18b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Robosense Technology will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Consensus from 21 of the Hong Kong Electronic analysts is that Robosense Technology is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥83m in 2026. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 68%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Robosense Technology's growth isn’t the focus of this broad overview, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Robosense Technology

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 9.5% 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 Robosense Technology, so if you are interested in understanding the company at a deeper level, take a look at Robosense Technology's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:

1. Valuation: What is Robosense 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 Robosense 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 Robosense 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.