Sansteel MinGuangLtd.Fujian's low P/S ratio is due to weaker forecast growth than the industry. Shareholders accept this, anticipating no pleasant surprises in future revenue. The share price is unlikely to rise strongly soon.

The company's falling returns and plummeting sales despite increased investment is a disturbing trend. The depreciating stock price and increased reliance on short-term creditors or suppliers reveals additional risk.

Sansteel's higher deficit, immense debt load, and dwindling revenue pose potential risks, as underscored by accumulated losses of CN¥4.1b over the past year. Prospective investors should consider these factors and the company's balance sheet thoroughly.