Fujian Snowman's performance falls short of expectations, with continuous share price weakness potentially signaling trouble. However, recent market conditions may offer a potential opportunity. Investors should be aware of identified warning signs.

Fujian Snowman reported a drop in revenue to CN¥2.0b, down by 5.9%, and suffered an EBIT loss over the past year. Analysts raise concerns over their soaring debt given the company's financial imbalance.

Investors might be ignoring the slower recent growth rates of Fujian Snowman and could face disappointment if P/S falls to levels more in-line with growth rates. Considering the recent medium-term conditions, the current share price may not represent fair value.