Baota Industry's high P/S ratio and slower-than-industry revenue growth could risk a share price decrease. Without significant medium-term improvements, the current share price may be unreasonable.
Given recent growth and expected industry trends, Baota Industry's high P/S ratio seems risky. The recent surge in the company's shares may enhance its P/S number, but investors may face considerable risk if the P/S drops closer to the company's growth rate.
Concerns over Baota Industry's financial health surface due to its increased debt and EBIT losses. Revenue growth doesn't offset the risk, given the company's EBIT loss, negative free cashflow, and current debt circumstances. Profitability growth remains uncertain.
Baota Industry Stock Forum
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