The company's low P/S ratio is due to poor financial performance and declining revenue. Despite industry's predicted 28% growth, the company's momentum is downward. The P/S could fall further without top-line growth improvement. Shareholders accept low P/S, conceding future revenue may not surprise positively.

Guangdong SACA Precision Manufacturing's declining revenue and losses have led to a 19% annual drop in share price. The company's poor performance over the past five years indicates a long-term share price weakness, a potential red flag for investors.