SVG Tech Group's falling revenue and EBIT loss weaken its balance sheet. The company's debt, relative to cash and liabilities, and its burn through of CN¥23m last year, heighten the stock's perceived risk.
Investors expect the company to underperform the broader industry, reflecting in its low P/S ratio. Limited growth rates are anticipated to persist, reducing stock value. If medium-term revenue trends persist, a share price reversal seems unlikely.
Despite lower growth rates, SVG is attractive to investors. However, if P/S aligns with recent growth rates, disappointment could ensue. Current share price may not be fair unless conditions improve. The risk of share price decline looms.
Svg Tech Group Stock Forum
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