Shandong Yabo Technology's high P/S ratio may be justified by its expected solid growth and performance. Shareholders appear confident in the company's revenue prospects, but the P/S ratio shouldn't be the sole determinant of its future prospects.
Investors anticipate Shandong Yabo Technology's robust growth to persist, leading to a willingness to pay more for the stock. Shareholders are confident in the revenue stability, providing strong support to the share price unless medium-term conditions alter.
Shandong Yabo Technology's conservative balance sheet doesn't signal heavy debt, but its lack of EBIT-level profit and CN¥23m cash burn last fiscal year suggest possible risks despite positive revenue growth. The firm might need capital soon.
Despite strong three-year revenue trends, shareholders believe in the company's potential to outperform the industry, keeping the P/S high. Assuming no major changes in profitability, the share price should remain supported.
Shandong Yabo Technology Stock Forum
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