The company's uninspiring revenue growth rate and lack of profitability have left the market unimpressed. A closer look at the financial data is suggested, as the past five years show a 3% annual loss for shareholders.
The company's balance sheet is strained due to high debt and liabilities versus cash and near-term receivables. It's losing money on the EBIT line, with a loss of CN¥400m, and had a negative free cash flow of CN¥954m over the last year, making it a risky stock.
Despite the company's inconsistent growth compared to industry trends, it's trading at a fairly similar P/S ratio to the industry. If recent medium-term revenue trends continue, the probability of a price drop for this stock becomes higher.
Guizhou BC&TV Information Network Stock Forum
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