Despite a recent revenue increase, market expectations of dwindling future performance keep P/S suppressed. The company's downward momentum, compared to the industry's predicted 25% growth, paints a sobering picture. The low P/S ratio could fall further without top-line growth improvement.
The company's debt usage is seen as risky due to its EBIT loss and liabilities. Its weak balance sheet and CN¥1.5b negative free cash flow over the past year make the stock highly risky.
Despite Tatwah Smartech's strong recent growth, it's still struggling to keep pace as its three-year revenue frustratingly shrank by 22% overall. The current P/S ratio may not be sustainable if revenues continue to decline, presenting potential risk for existing shareholders.
Tatwah Smartech Stock Forum
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