Zhejiang Jingu Stock Forum

The company's financial strain is evident in its debt and liabilities, slow revenue growth, and lack of earnings before interest and tax. Its negative free cash flow and EBIT loss make it a high-risk investment.

Zhejiang Jingu's recent revenue performance may not meet industry expectations, leading to a reduced P/S. Investors expect limited growth rates to continue and are willing to pay less for the stock. Unless medium-term conditions improve, they will form a barrier for the share price.

Zhejiang Jingu's P/S ratio may decline without a notable uplift in medium-term performance, indicating investors' reluctance to sell their stock. However, this could lead to future disappointment if the P/S aligns more with recent growth rates.

The company's debt situation appears risky for shareholders given EBIT level losses and high cash burn in the last year. Its slow 7.2% revenue growth rate sets a high-risk profile, according to the author.