Shanghai Xinhua Media Stock Forum

Shanghai Xinhua Media's high P/S ratio, despite its share price surge, is risky due to slower than industry revenue growth. Without significant medium-term performance improvement, the P/S ratio may decline to a more reasonable level.

The high P/S ratio of Shanghai Xinhua Media may indicate investors' expectation of business turnaround. However, its alignment with the company's stagnant growth can lead to future disappointments for shareholders. Note the potential risk due to the excessive premium relative to growth rates.

The declining net income, low ROE, and reinvestment strategy of the company imply inefficient usage of retained earnings. This might explain the poor earnings growth of Shanghai Xinhua Media, though further evaluation is needed for better understanding.

Despite a low return, Shanghai Xinhua Media's recent ROCE improvement marks a positive direction. Historical stock performance suggests the investment market may not be fully recognizing this progress, hinting at potential long-term growth.