Xi’an Typical Industries Co.,Ltd’s (SHSE:600302) 26% Share Price Plunge Could Signal Some Risk
The Xi’an Typical Industries Co.,Ltd (SHSE:600302) share price has softened a substantial 26% over the previous 30 days, handing back much of the gains the stock has made lately. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 22% in that time.
Although its price has dipped substantially, there still wouldn’t be many who think Xi’an Typical IndustriesLtd’s price-to-sales (or “P/S”) ratio of 3.4x is worth a mention when the median P/S in China’s Machinery industry is similar at about 2.9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
