Sincere Watch (Hong Kong)'s high P/S ratio may be due to expectations of outperforming the industry. However, its recent medium-term revenue decline could impact the share price. Unless conditions improve significantly, the share price may not be seen as fair value.
Despite negative revenue trends, high P/S ratio implies strong investor optimism; this could mean future disappointment if P/S aligns with negative growth rates. Underperforming revenue trends could decrease share price, risking shareholders' investments due to excessive premium.
SINCEREWATCH HK Stock Forum
No comment yet