What AInnovation Technology Group Co., Ltd’s (HKG:2121) 33% Share Price Gain Is Not Telling You
AInnovation Technology Group Co., Ltd (HKG:2121) shareholders are no doubt pleased to see that the share price has bounced 33% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 15% in the last twelve months.
Although its price has surged higher, you could still be forgiven for feeling indifferent about AInnovation Technology Group’s P/S ratio of 1.7x, since the median price-to-sales (or “P/S”) ratio for the Software industry in Hong Kong is also close to 1.9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
