The company's financial health is concerning due to its debt situation, negative EBIT, and significant drop in revenue. Its weak balance sheet and negative free cash flow of CN¥113m over the last year make the stock risky.
Despite poor revenue, the company's P/S ratio surpasses industry peers, indicating investor hopes for a business turnaround. However, continued negative growth rates may disappoint shareholders and risk potential investors.
The 6% share price growth may not mirror the actual business growth. If revenue growth persists, profits are likely to follow. The stock's recent performance improvement suggests a closer look may be warranted.
The company is seen as risky due to declining revenue, EBIT level loss, and a mismatch of liabilities and liquid assets. External risk factors also present as evidenced by 2 warning signs in the investment analysis of Fujian Furi ElectronicsLtd.
Despite Fujian Furi Electronics' lack of profits, its steady revenue growth could potentially lead to future profitability. The company's recent share price momentum suggests that more attention could be paid to its stock.
Fujian Furi Electronics Stock Forum
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