Despite its debt, the company maintains a conservative balance sheet. However, a significant decrease in EBIT over the past year and weaker than expected conversion of EBIT to free cash flow could make even modest debt risky.

Guangdong Meiyanjixiang Hydropower Co.,Ltd.'s high P/S ratio is concerning given its recent medium-term revenue trends. There's a risk of future disappointment if the P/S falls to levels more in line with recent growth rates. The current share price may not be reasonable unless conditions improve markedly.