The company's low P/S ratio is due to declining revenue and expectations of this trend continuing. Investors accept the low ratio, indicating no anticipation of positive revenue surprises. If recent medium-term revenue trends persist, the share price is unlikely to see significant movement.
The company's poor performance and falling revenue pose a risk for investors. Despite potential market overreaction, investors should prioritize high-quality businesses. The company's dismal performance over the past year concludes a five-year period of 11% annual loss for shareholders.
Jiangsu Zhongli Group Stock Forum
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