Despite profitability and revenue concerns, the company's positive three-year return may be due to cost-cutting. The recent sell-off could signal a growth opportunity. However, 2 warning signs in Shenzhen Infinova's investment analysis could be worrisome.
Shenzhen Infinova's high P/S ratio may not be justified due to its declining revenue and expected industry growth. Investors may face disappointment if the P/S falls in line with recent negative growth rates. Share price decline is a real possibility unless medium-term conditions improve significantly.
Despite market cap of CN¥11.1 billion, the company's declining revenue, EBIT loss, and significant debt make it a risky investment. Close monitoring of its balance sheet suggested as its liabilities surpass cash and near-term receivables.
Shenzhen Infinova Stock Forum
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