Shenzhen Sinovatio Technology Stock Forum

The company's profits probably give an overly generous impression of its sustainable level of profitability due to the boost from unusual items and a tax benefit. The future profitability might drop noticeably if these benefits are not repeated.

Investors expect strong revenue performance, justifying the high P/S ratio. Despite recent growth, the company struggles due to a three-year revenue decline. Yet, anticipated higher-than-industry growth makes the stock attractive.

High P/S ratio of company is believed to reflect investor expectations of strong future revenue. Shareholders reluctance to sell shares indicates belief in a prosperous future for Shenzhen Sinovatio Technology.