REPT BATTERO Energy Co., Ltd. (HKG:666) On The Verge Of Breaking Even
REPT BATTERO Energy Co., Ltd. (HKG:666) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. REPT BATTERO Energy Co., Ltd. engages in the research, design, development, production, and sale of lithium-ion battery products in China and internationally. The HK$32b market-cap company posted a loss in its most recent financial year of CN¥1.2b and a latest trailing-twelve-month loss of CN¥785m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which REPT BATTERO Energy will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
REPT BATTERO Energy is bordering on breakeven, according to the 6 Hong Kong Electrical analysts. They expect the company to post a final loss in 2024, before turning a profit of CN¥89m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving REPT BATTERO Energy's growth isn’t the focus of this broad overview, though, bear 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.
View our latest analysis for REPT BATTERO Energy
One thing we would like to bring into light with REPT BATTERO Energy is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in REPT BATTERO Energy's case is 97%. A higher level of debt requires more stringent capital management which 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 factors you should look at:
- Historical Track Record: What has REPT BATTERO Energy'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.
- 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.
- 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.