Shenzhen Kingsino Technology Stock Forum

Investors' belief that the company will underperform the broader industry and its recent revenue trends contribute to its low P/S ratio. Unless conditions improve, these factors will continue to hinder the share price.

Despite a recent uptick, Shenzhen Kingsino Technology's long-term performance has disappointed shareholders with a 6% annual loss over five years. Insufficient revenue growth hasn't offset the share price decline. Investors are urged to consider other factors and potential warning signs before investing.

The company's low price-to-sales ratio is due to underwhelming revenue trends over the past three years. Investors anticipate these limited growth rates to persist, thus paying less for the stock. A share price turnaround seems unlikely if these trends persist.

Propelled by its EBIT loss and current balance sheet liabilities, the company faces risk holding any debt. A potential need for balance sheet repair and last year's cash burn of CN¥274m amplify these risks for the company and shareholders.

The market may not have fully considered the company's growth track record, implying potentially higher future returns if revenue growth is sustained. However, lack of current profits requires further projections to justify valuation.