The company's strong revenue growth supports its high P/S ratio, outperforming the industry outlook. Investors anticipate this growth to persist, justifying a higher stock price. However, using price-to-sales ratios for investment decisions requires caution.
Despite revenue growth, Mubang High-TechLtd is incurring a CN¥25m EBIT line loss. The company's balance sheet is deemed risky due to its debt and CN¥160m cash burn over the past year.
Mubang High-Tech Ltd's EBIT loss and liabilities indicate unwise debt. With the company burning through CN¥148m last year, the stocks seem risky. However, raising capital could strengthen their balance sheet, given its CN¥6.25b market cap.
Mubang High-Tech Stock Forum
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