The company's balance sheet is considered a bit strained due to its debt and lack of profits. The company's ability to grow its way to profits is uncertain, and the stock is considered risky due to these factors.
YaGuang Technology Group's revenue performance is expected to decline, possibly keeping the P/S ratio low. If recent medium-term revenue trends persist, the share price may remain stable. The low P/S ratio may reflect shareholders' anticipation of no future revenue surprises.
Shareholders are disappointed due to lack of profits or revenue growth. However, the company's recent total shareholder return of 14% over one year, better than the annualised return of 6% over half a decade, suggests some business momentum.
Concerns are raised due to the EBIT loss and large debt. The balance sheet is deemed 'far from match-fit' with a risky cash burn rate of CN¥258m. However, revenue growth gives hope for balance sheet improvement.
Despite the understandable share price decline due to consistent revenue losses, potential future growth could be in sight. Yet, significant financial risks persist as warning signs for the company have been identified.
$Shenzhen Inovance Technology (300124.SZ)$$Estun Automation (002747.SZ)$ UOB KH has a buy call on Inovance and tp of RMB82.00, now pegged to 38.3x 2024F PE, on a par with its historical forward mean. They believe Inovance as the leader among domestic automation player will benefit the most from the on-going import substitution trend. We also expect Inovance to benefit more from the recovery in broader economy, given their larger exposure to end-markets such as property, semi and consumer electroni...
YaGuang Technology Group Stock Forum
UOB KH has a buy call on Inovance and tp of RMB82.00, now pegged to 38.3x 2024F PE, on a par with its historical forward mean.
They believe Inovance as the leader among domestic automation player will benefit the most from the on-going import substitution trend. We also expect Inovance to benefit more from the recovery in broader economy, given their larger exposure to end-markets such as property, semi and consumer electroni...
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