Guangdong Guanghua Sci-Tech's share price and earnings per share drop is seen negatively. However, a recovery could present an opportunity for investors. Long-term share price weakness may be a bad sign, but contrarian investors might see a potential turnaround.

The company's falling revenue and EBIT loss, coupled with its liabilities, raise concerns about its use of debt. Its balance sheet is considered a bit strained, and its financial situation is deemed risky.

Guangdong Guanghua Sci-Tech's below-market performance implies potential unresolved challenges. While the current situation may seem like a buying opportunity, potential investors should first assess the business quality.