When Will REPT BATTERO Energy Co., Ltd. (HKG:666) Breakeven?

We feel now is a pretty good time to analyse REPT BATTERO Energy Co., Ltd.'s (HKG:666) business as it appears the company may be on the cusp of a considerable accomplishment. REPT BATTERO Energy Co., Ltd. engages in the research, design, development, production, and sale of lithium-ion battery products in China and internationally. On 31 December 2024, the HK$27b market-cap company posted a loss of CN¥1.2b for its most recent financial year. 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?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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REPT BATTERO Energy is bordering on breakeven, according to the 6 Hong Kong Electrical analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥826m in 2026. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 90%, which signals high confidence from analysts. 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 REPT BATTERO Energy's upcoming projects, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for REPT BATTERO Energy

Before we wrap up, there’s one issue worth mentioning. REPT BATTERO Energy currently has a 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 compiled a list of pertinent aspects you should further examine:

1. 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.
2. 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.
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.