Despite a price drop, North Long Dragon New Materials Tech's P/S ratio still surpasses the industry median. High expectations may drive this, but if business prospects don't improve, the P/S ratio could fall, posing risks to shareholders and deterring potential investors.

North Long Dragon New Materials Tech's weak earnings report did not discourage the market, leading to a rally in share prices. However, unusual items might be bolstering its statutory profit, indicating its earnings power could be less robust than it appears. Investors should be aware of potential warning signs in the company.