Huafon Microfibre Stock Forum

The company's balance sheet appears strained due to its debt level and EBIT loss over the last year. The company also bled CN¥13m in negative free cash flow over the last twelve months, indicating potential risk.

Investors expect the company to underperform the industry, reflecting in its low P/S ratio. Limited growth rates may lead to reduced stock prices, as potential revenue improvement may not justify a higher P/S ratio.

The company's balance sheet shows a risky situation with an EBIT loss of CN¥52m and significant liabilities against its cash and near-term receivables. Huafon Microfibre (Shanghai)'s debt level is concerning amid dwindling earnings and cash burn.