Hengyi Petrochemical's share price drop may hint at business performance issues, indicated by a significant EPS drop. Last year's performance, worse than the annualized loss of 7% over half a decade, suggests unresolved challenges. Investors should consider other factors and warning signs before investing.

Hengyi Petrochemical's low P/S ratio is justified due to its unexciting future revenue forecast. Expectations of lackluster future revenues are likely to limit strong share price gains.

The stock's poor performance over time, including the loss of 3% per year over the last five years, suggests that substantial improvement in the company's fundamental performance is required to reverse this trend.