Ronglian Group Ltd. Stock Forum

Ronglian Group's low P/S ratio may be due to its falling revenue. Without top-line growth improvement, the P/S could drop further, possibly disappointing shareholders. Significant share price movement seems unlikely considering current circumstances and recent medium-term revenue trends.

Perceptions that Ronglian Group could underperform the industry may explain its low P/S ratio. The company's declining revenue trends make any strong share price movement hard to predict.

Despite a net cash position, Ronglian Group's 22% revenue shrinkage doesn't portend well for the company. Although it has positive free cash flow of CN¥184m, its mediocre revenue growth may not present a compelling investment opportunity.