Investors' high expectations may be inflating Grace Fabric TechnologyLtd's P/S ratio despite poor revenue performance. The company's unstable growth rates and weak revenue estimates could negatively impact the share price.

The company's use of debt is a concern due to its EBIT loss and the decrease in revenue. The balance sheet is strained, making the stock risky. It is recommended that shareholders continue to monitor the balance sheet.

Investing in Grace Fabric TechnologyLtd could be risky due to its higher P/S ratio and lower expected growth. The uncertain revenue outlook questions the sustainability of its current stocks. Significant improvements are needed to justify current prices.

Given the company’s market capitalization of CN¥7.86b, the descending revenue, EBIT loss and excess liabilities over cash and short-term receivables, concerns raise over its debt risk. Negative free cash flow of CN¥263m over the past year adds to this caution.