Despite strong growth, market expectations of future revenue tapering off may be keeping P/S from rising. Investors may be overlooking recent poor growth, hoping for a business turnaround. However, unless recent medium-term circumstances improve, shareholders may face a tough period ahead.

Despite its net loss, Wuxi Huadong Heavy Machinery doesn't exhibit much near-term balance sheet risk, given the net cash position. The lack of positive EBIT and sluggish revenue growth, however, create discomfort for stock observers.