Investors may believe the company's revenue growth will underperform the industry, causing a low P/S ratio. The company's recent revenue decline is concerning, especially compared to the industry's expected 20% growth. These trends may stagnate the share price.
The company's high debt and deficit relative to its market cap of CN¥5.07b is worrisome. Its EBIT loss of CN¥548m and cash burn of CN¥710m over the last year, along with slow revenue growth, make it a risky stock.
The recent 12% rise in share price doesn't mask a yearly drop of 18%, hinting at weak performance. The shrinkage in returns over five years may alarm potential investors, yet contrarian investors could find turnaround potential here. Feeble revenue growth over the past year corresponds to the share price decrease, justifying the market's response.
Hubei Radio & Television's escalating debt, liabilities and EBIT loss pose investment risks. Its slow growth and leveraged balance sheet hint at potential dilution of shareholder holdings for quick balance sheet stabilization.
Hubei Radio & Television Information Network Stock Forum
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