Huitongda Network Co., Ltd. (HKG:9878) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Huitongda Network Co., Ltd. provides commerce and service platform that serves business customers in retail market. The HK$31b market-cap company announced a latest loss of CN¥220m on 31 December 2021 for its most recent financial year result. The most pressing concern for investors is Huitongda Network's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

Check out our latest analysis for Huitongda Network

Huitongda Network is bordering on breakeven, according to the 3 Hong Kong Trade Distributors analysts. They expect the company to post a final loss in 2021, before turning a profit of CN¥459m in 2022. So, the company is predicted to breakeven approximately 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 71%, which is extremely buoyant. 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 Huitongda Network's upcoming projects, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one issue worth mentioning. Huitongda Network currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Huitongda Network 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 Huitongda Network, take a look at Huitongda Network's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. Valuation: What is Huitongda Network 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 Huitongda Network 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 Huitongda Network'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.