Despite revenue growth, Siasun Robot&AutomationLtd is incurring a CN¥651m EBIT line loss. The company's balance sheet is deemed unfit due to liabilities and cash ratio, making the stock risky after burning through CN¥302m last year.
The high P/S ratio of Siasun, coupled with its not-so-promising revenue projections, could disappoint investors if the sentiment doesn't improve. This poses a risk for investors paying a premium if revenue growth falls short.
Despite revenue boost, Siasun Robot & Automation's debt and losses are concerning. The EBIT loss and negative free cash flow hint at financial risk as the company's balance carries sizable debt. Its riskiness, however, may be mitigated by a market capitalization of CN¥18.1b and potential capital raise.
Siasun Robot&Automation Stock Forum
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