Haibo Heavy Engineering's high P/S ratio may not be justified due to declining revenues and underperformance against industry growth forecasts. Shareholders may face a difficult period unless recent medium-term circumstances improve.

Despite Haibo Heavy Engineering's dip in share price and revenue, its high price-to-sales ratio of 3.6x is concerning given its recent poor growth rate. Investors may face disappointment if the P/S falls in line with the negative growth rates.