Despite Wens Foodstuff Group's decent revenue growth and agreeable forecasts, its P/S ratio remains low, indicating market's potential doubt in these growth estimates and probable revenue instability. Note, there are 3 warning signs for the Group, 2 being significant.

Despite good statutory earnings and a profitable year for Wens Foodstuff Group, a large unusual item may mask the true earnings power. Surface-level improvements hide a potential requirement for deeper financial analysis.

Total Retail Sales of Consumer Goods: December 2022 total retail sales of consumer goods were 405.42 billion yuan, nominal -1.8% YoY (+4.1 pct from previous value), higher than expected, mainly due to the high increase in demand for drugs under the influence of the epidemic in December, as well as benefiting from the Spring Festival + subjective travel intentions to...