Despite declining revenues, Jiangsu Sainty's P/S ratio aligns with industry standards, indicating investors may be ignoring poor growth rates in hopes of a business turnaround. Continued negative growth could lower its P/S ratio, disappointing shareholders and posing risks to potential investors.
Despite the company's declining revenues and industry growth projection, its P/S ratio is similar to the rest of the industry. If medium-term conditions don't improve significantly, shares may seem overvalued. A potential share price drop could disrupt fair value perceptions.
Jiangsu Sainty's substantial boost from unusual items that are once-off in nature will not persist, suggesting that statutory earnings are a poor guide to its underlying profitability. Its underlying earnings power is likely lower than its statutory profit.
Jiangsu Sainty Corp.,Ltd. Stock Forum
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