With the business potentially at an important milestone, we thought we'd take a closer look at Zylox-Tonbridge Medical Technology Co., Ltd.'s (HKG:2190) future prospects. Zylox-Tonbridge Medical Technology Co., Ltd., a medical device company, provides neuro- and peripheral-vascular interventional medical devices the People's Republic of China and internationally. With the latest financial year loss of CN¥114m and a trailing-twelve-month loss of CN¥124m, the HK$3.6b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Zylox-Tonbridge Medical 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.
See our latest analysis for Zylox-Tonbridge Medical Technology
According to the 4 industry analysts covering Zylox-Tonbridge Medical Technology, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of CN¥71m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 119% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
SEHK:2190 Earnings Per Share Growth January 18th 2024
Given this is a high-level overview, we won't go into details of Zylox-Tonbridge Medical Technology's upcoming projects, though, keep in mind that generally 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 judiciously, with debt making up 0.3% 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 key fundamentals of Zylox-Tonbridge Medical Technology 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 Zylox-Tonbridge Medical Technology, take a look at Zylox-Tonbridge Medical Technology's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:
Valuation: What is Zylox-Tonbridge Medical 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 Zylox-Tonbridge Medical Technology is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Zylox-Tonbridge Medical Technology'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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