Despite poor revenue, the market expects a reversal, justifying the high P/S ratio. The company's forecasted growth, higher than the Software industry, keeps the P/S ratio high. Strong revenue predictions should keep the share price buoyant.
Hangzhou Arcvideo Technology could potentially pay off its debt smoothly but lost revenue and EBIT level could affect its future profitability. Considering a balance of CN¥136.7m and burnt cash of CN¥223m in the past year, the company may need to raise capital soon.
Suzhou Shihua New Material Technology's ROCE is falling, despite reinvestment, which is worrying. This might explain the slight stock rise in recent years. This performance might make it unsuitable for investors seeking stellar stocks.
Hangzhou Arcvideo Technology Co., Ltd. Stock Forum
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