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 design, research and development, production, and sale of lithium-ion battery products in China and internationally. With the latest financial year loss of CN¥1.5b and a trailing-twelve-month loss of CN¥1.2b, the HK$34b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is REPT BATTERO Energy's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for REPT BATTERO Energy

Consensus from 4 of the Hong Kong Electrical analysts is that REPT BATTERO Energy is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of CN¥709m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 110% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for REPT BATTERO Energy given that this is a high-level summary, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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 90%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of REPT BATTERO Energy to cover in one brief article, but the key fundamentals for the company can all be found in one place – REPT BATTERO Energy's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

1. Valuation: What is REPT BATTERO Energy 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 REPT BATTERO Energy 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.