Investors may believe Guangxi Wuzhou Zhongheng GroupLtd's revenue growth will underperform the industry, causing its low P/S ratio. If top-line growth doesn't improve, the P/S could fall further. Given the company's shrinking revenue and the industry's growth, shareholders accept the low P/S, conceding future revenue probably won't surprise positively.
Guangxi Wuzhou Zhongheng GroupLtd's approach to debt is seen as careful due to its strong net asset position. Despite losing on an EBIT level, paper profit of CN¥59m and cash position suggest low short-term risk. The 22% revenue growth is viewed positively.
Guangxi Wuzhou Zhongheng Group Stock Forum
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