Despite declining revenues, Henan Huanghe Whirlwind's P/S exceeds industry peers, raising concerns. The recent price jump aligns it with industry, but falling revenue may not sustain positivity. Unless recent medium-term circumstances improve, shareholders may face a tough period.

The company's balance sheet reveals a deficiency surpassing its CN¥3.89b market cap, potentially leading to heavy dilution if liabilities are paid down by raising capital at current share price. Negative EBIT and significant liabilities make it a risky investment.

Henan Huanghe Whirlwind's low P/S ratio is due to declining revenue. If top-line growth doesn't improve, the P/S could fall further. Shareholders accept the low P/S now, but this could lead to future disappointment if revenue doesn't improve.

Negative trends in ROCE and capital employed signal potential competitive challenges for Henan Huanghe Whirlwind. Despite this, shareholders still saw a 9.2% return over five years. But the unsettling trends may suggest better investments elsewhere.