Sunshine Guojian Pharmaceutical's high P/S ratio may be due to expectations of strong revenue performance. However, with less than stellar revenue forecasts, the P/S could fall if sentiment doesn't improve. Investors should remain cautious.

Sunshine Guojian Pharmaceutical's high P/S ratio doesn't match its modest revenue predictions. A possible correction is imminent if revenue growth doesn't pick up. Prices could only be justified if a significant turnaround in conditions occurs.

Sunshine Guojian Pharmaceutical (Shanghai)'s weak ROE and net income decline may negatively affect the share price due to low earnings retention or inadequate capital allocation. Despite the industry's 11% growth over a 5-year period, the company's progress lags behind. Analysts predict a slight improvement in the company's earnings growth.