Investors' expectations of an improvement in Hainan Haiqi Transportation Group's revenue performance may explain its high P/S ratio. However, with predicted future revenue decline, this high ratio may not be sustainable, potentially impacting the share price negatively.

Despite revenue growth, the company lost CN¥25m at the EBIT level and bled CN¥152m in negative free cash flow over the last year. Its high debt level strains the balance sheet.