Hua Ying Technology Stock Forum

CPT Technology's shrinking revenue and high P/S ratio could pose a risk to shareholders. If medium-term revenue trends persist, the current stock value may be hard to accept for prospective investors.

Investors may be ignoring CPT Technology's recent weak growth, betting on future prospects. Yet, high P/S ratio and negative growth could lead to future letdowns unless performance improves significantly. A thorough review of medium-term conditions and risks is essential before deeming the share price as fair value.

The reported debt level and the negative earnings before interest and tax raise concern about the company's use of debt and its bottomline performance. Given these factors, the stock may represent a considerable risk for potential investors.

Despite a 50% contraction in revenue, a 156% rise in share price may hint at an already priced in drop. The improvement in shareholder return could signal a positive trajectory for the business.