High P/S ratio may reflect expectations of the company outperforming the industry. However, with recent poor growth, these prices may not be sustainable. Shareholders may face a difficult period unless medium-term circumstances improve.

Bulliet views Danhua's long-term loss and shrinking revenue as concerning, warning that 'turnarounds seldom turn'. Despite short-term gain, Bulliet urges caution due to the company's past performance and market conditions.