Investors are paying a high price for the stock despite average growth rates. However, the share price may decline unless medium-term conditions improve. The high P/S ratio may not be justified given the company's performance and industry growth rates.
Sichuan Golden Summit (group) may face new competition or smaller margins due to declining ROCE and steady capital employed. The increase in current liabilities to total assets ratio could introduce new risk elements.
Investors expect the company to outperform the industry, hence the high P/S ratio. However, slower-than-industry revenue growth and a high P/S ratio indicate a significant risk of share price decrease.
Analysts warn of a potential share price decrease for Sichuan Golden Summit due to slower-than-industry revenue growth and high P/S ratio. Investors risk overpaying for the stock and may face future disappointment if P/S adjusts to recent growth rates.
Sichuan Golden Summit (group)'s decreasing ROCE trend might affect their future profitability. Despite stock price growth over the past five years, underlying financial trends may create doubts about future growth.
Sichuan Golden Summit Stock Forum
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