Despite the company's debt, its net cash position and market capitalization of CN¥4.51b alleviate concerns. However, balance sheet strength, uninspiring revenue growth, and lack of positive EBIT warrant caution. Note the 2 warning signs in the company's investment analysis.
The company's low P/S ratio may reflect market anticipation of a future revenue decline. Despite this, if the company stays its course, its share price could align with its revenue. However, its poor revenue forecast, as per analysts, is causing its low P/S. A turn of luck is needed for a higher future P/S.
Hefei Fengle Seed Stock Forum
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