Guizhou Chitianhua Stock Forum

The company's P/S ratio is typical for a company expected to deliver moderate growth and perform in line with the industry. However, its recent three-year growth is lower than the wider industry forecast, placing shareholders at risk.

The company's use of debt is concerning given its EBIT loss of CN¥340m and negative free cash flow of CN¥36m over the last twelve months. The balance sheet is considered far from match-fit and the company is deemed risky.

Guizhou ChitianhuaLtd's consistent underperformance, falling revenues, and unprofitability present significant challenges to its future outlook. With unresolved issues lingering, investors are cautioned to ensure they're investing in a quality business.