The market's belief in the company's underperformance in recent revenue and medium-term growth compared to the industry is keeping the P/S ratio low. These conditions form a barrier for the share price.
Anhui Shenjian New Materials Co.,Ltd's low P/S ratio is due to disappointing three-year revenue trends. Shareholders accept this as they anticipate no future revenue surprises. If these trends persist, a share price reversal seems unlikely.
Despite having a manageable balance sheet, the company's EBIT loss of CN¥24m over the past year and reduced revenue might be too risky for some investors. The business' future viability is contingent on its growth in revenue and earnings.
Anhui Shenjian New Materials Stock Forum
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