Despite a recent share price jump, Jiangsu Huahong Technology's P/S ratio lags behind industry peers, indicating market skepticism about the company's revenue growth estimates. Investors anticipate future revenue volatility.

Given the company's liabilities and negative EBIT, it's unwise for it to have any debt. The balance sheet is unfit and the company bled CN¥99m in negative free cash flow over the last year, making it a risky investment.

Investors' skepticism about Jiangsu Huahong Technology's future growth expectations may be causing its low P/S ratio. The market seems to question the revenue growth estimates, anticipating future revenue volatility. The company's shares trade lower than expected given its forecast growth aligns with the industry.

Jiangsu Huahong Technology shareholders suffered a 25% loss, faring worse than broader market's 7.7% loss. When considering long-term sustainability, the current sell-off might be a buying opportunity.

There are concerns about Jiangsu Huahong Technology's balance sheet due to its liabilities, falling revenue, and EBIT loss. The use of debt and the recent losses indicate that the company may be considered a risky investment.