The company's EBIT loss of CN¥463m and trailing twelve month loss of CN¥559m strain its balance sheet. Its use of debt is risky and its ability to turn losses into profit is concerning. Despite revenue growth, the lack of profits and high debt level are red flags.
The market anticipates dwindling future revenue, keeping the P/S suppressed. The company's declining medium-term revenue is a key factor in its low P/S ratio. Investors believe the potential for revenue improvement doesn't justify a higher P/S ratio. If recent revenue trends persist, significant share price movement is unlikely soon.
Saurer Intelligent Technology Stock Forum
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