Zhejiang Wazam New Materials Stock Forum

Despite strong growth forecasts, Zhejiang Wazam's P/S lags behind the industry. Market may anticipate revenue instability, pressuring the P/S ratio. Investors should note 2 warning signs for the company.

Shareholders accept firm's lower P/S based on lackluster forecasted growth, signaling no big surprises in future revenue. Zhejiang Wazam needs a major positive shift for P/S rise.

Company's increased debt and EBIT loss labels it as risky. Concerns about managing debt without dilution are raised. Its strained, though not irreparable balance sheet, and negative free cash flow in the last 12 months further raise the risk level.