Despite strong revenue growth, the company's high P/S ratio is alarming due to poor medium-term revenue growth. Investors overlook this, hoping for a business turnaround. However, unless recent medium-term circumstances improve, shareholders may face a tough period ahead.
Concerns arise as Guangdong Rongtai's revenue trends and high P/S ratio indicate major risk to the share price. With the stock value difficult to accept, the undiminished P/S ratio despite a share price plunge reflects investor sentiment over valuation metrics.
Guangdong Rongtai's share surge hints at business momentum, despite warnings as it didn't make a profit last year and saw a substantial revenue decline.
Dawei Technology(Guangdong) Group Stock Forum
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