We feel now is a pretty good time to analyse Nayuki Holdings Limited's (HKG:2150) business as it appears the company may be on the cusp of a considerable accomplishment. Nayuki Holdings Limited, an investment holding company, operates a chain of teahouses in China. On 31 December 2021, the HK$8.1b market-cap company posted a loss of CN¥4.5b for its most recent financial year. The most pressing concern for investors is Nayuki Holdings' 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 Nayuki Holdings

According to the 11 industry analysts covering Nayuki Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of CN¥101m in 2022. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 65% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of Nayuki Holdings' upcoming projects, though, keep in mind that typically 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 prudently, with debt making up 0.008% 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 Nayuki Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nayuki Holdings' company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Valuation: What is Nayuki Holdings 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 Nayuki Holdings 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 Nayuki Holdings'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.