Shengli Oil & Gas Pipe Holdings Limited’s (HKG:1080) 52% Price Boost Is Out Of Tune With Revenues
Despite an already strong run, Shengli Oil & Gas Pipe Holdings Limited (HKG:1080) shares have been powering on, with a gain of 52% in the last thirty days. The last month tops off a massive increase of 300% in the last year.
Even after such a large jump in price, there still wouldn’t be many who think Shengli Oil & Gas Pipe Holdings’ price-to-sales (or “P/S”) ratio of 0.5x is worth a mention when it essentially matches the median P/S in Hong Kong’s Energy Services industry. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
