The high P/S ratio of the company is alarming due to its lower predicted growth compared to the broader industry. The recent drop in revenue doesn't justify the high P/S ratio, which may decrease if revenue sentiment doesn't improve, posing a risk to shareholders and potential investors.
Despite steady business prospects for AVIC (Chengdu)UAS, the downgrade in revenue estimates and price target may make investors more cautious about the company's future.
The shift to profitability and the potential for internal investment make AVIC (Chengdu)UAS a promising prospect for investors, despite the recent decline in its stock price. Further investigation into the company is recommended.
Despite the higher P/S ratio, investors are confident in future revenue growth and are willing to pay more for the stock, indicating a low likelihood of a significant share price drop in the near term.
AVIC (Chengdu)UAS could be a profitable investment, as the growth in ROCE and break into profit show promising trends. The company's growing returns suggest reinvestment opportunities with higher return rates.
Avic(chengdu)Uas Stock Forum
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