Despite Sinostone's debt, its net cash and liquid assets suggest a cautious approach. However, declining EBIT and growth expenditure, resulting in significant cash burn, make the debt riskier. There are also 3 warning signs, 2 of which are concerning.

Despite Sinostone(Guangdong)Ltd's high rate of profit retention, its low rate of return is likely hampering its earnings growth. The company's performance is not promising, and caution is advised when considering this stock.