The Golden Solar New Energy Technology Holdings Limited (HKG:1121) share price has done very well over the last month, posting an excellent gain of 35%. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 31% in the last twelve months.
Since its price has surged higher, you could be forgiven for thinking Golden Solar New Energy Technology Holdings is a stock to steer clear of with a price-to-sales ratios (or "P/S") of 29.9x, considering almost half the companies in Hong Kong's Luxury industry have P/S ratios below 0.6x. However, the P/S might be quite high for a reason and it requires further investigation to determine if it's justified.
SEHK:1121 Price to Sales Ratio vs Industry March 11th 2024
What Does Golden Solar New Energy Technology Holdings' P/S Mean For Shareholders?
Revenue has risen at a steady rate over the last year for Golden Solar New Energy Technology Holdings, which is generally not a bad outcome. One possibility is that the P/S ratio is high because investors think this good revenue growth will be enough to outperform the broader industry in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Golden Solar New Energy Technology Holdings' earnings, revenue and cash flow.
How Is Golden Solar New Energy Technology Holdings' Revenue Growth Trending?
Golden Solar New Energy Technology Holdings' P/S ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the industry.
Retrospectively, the last year delivered a decent 3.5% gain to the company's revenues. The latest three year period has also seen an excellent 151% overall rise in revenue, aided somewhat by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.
This is in contrast to the rest of the industry, which is expected to grow by 12% over the next year, materially lower than the company's recent medium-term annualised growth rates.
With this information, we can see why Golden Solar New Energy Technology Holdings is trading at such a high P/S compared to the industry. Presumably shareholders aren't keen to offload something they believe will continue to outmanoeuvre the wider industry.
The Key Takeaway
Shares in Golden Solar New Energy Technology Holdings have seen a strong upwards swing lately, which has really helped boost its P/S figure. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
As we suspected, our examination of Golden Solar New Energy Technology Holdings revealed its three-year revenue trends are contributing to its high P/S, given they look better than current industry expectations. Right now shareholders are comfortable with the P/S as they are quite confident revenue aren't under threat. If recent medium-term revenue trends continue, it's hard to see the share price falling strongly in the near future under these circumstances.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Golden Solar New Energy Technology Holdings that you need to be mindful of.
If you're unsure about the strength of Golden Solar New Energy Technology Holdings' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
金光新能源科技控股有限公司（HKG: 1121）的股價在上個月表現良好，漲幅爲35％。並非所有股東都會感到歡欣鼓舞，因爲股價在過去十二個月中仍然下跌了令人失望的31％。
由於其價格飆升，考慮到香港奢侈品行業中將近一半的公司的市銷率低於0.6倍，你認爲金光新能源科技控股是一隻值得避開的股票，其市銷率（或 “市銷率”）爲29.9倍，這是可以原諒的。但是，市銷率可能很高是有原因的，需要進一步調查以確定其是否合理。
SEHK: 1121 2024 年 3 月 11 日與行業的股價銷售比率
金光新能源科技控股的市銷率對股東意味着什麼？
去年，金光新能源科技控股公司的收入穩步增長，總體而言，這並不是一個壞結果。一種可能性是市銷率很高，因爲投資者認爲這種良好的收入增長足以在不久的將來跑贏整個行業。如果不是，那麼現有股東可能會對股價的可行性有些緊張。
我們沒有分析師的預測，但您可以查看我們關於金太陽新能源科技控股收益、收入和現金流的免費報告，了解最近的趨勢如何爲公司未來做好準備。
金光新能源科技控股的收入增長趨勢如何？
對於一家預計將實現非常強勁的增長，而且重要的是，表現要好於行業的公司來說，金光新能源科技控股公司的市銷率是典型的。
回顧過去，去年的公司收入實現了3.5％的可觀增長。在最近三年中，總收入也實現了151％的出色增長，這在一定程度上得益於其短期表現。因此，可以公平地說，該公司最近的收入增長非常好。
這與該行業的其他部門形成鮮明對比，該行業預計明年將增長12％，大大低於該公司最近的中期年化增長率。
有了這些信息，我們可以了解爲何金光新能源科技控股的市銷售率與行業相比如此之高。據推測，股東們並不熱衷於轉移他們認爲將繼續超越整個行業的東西。
關鍵要點
金光新能源科技控股的股價最近強勁上漲，這確實有助於提高其市銷率。通常，我們傾向於限制使用市銷率來確定市場對公司整體健康狀況的看法。
正如我們所懷疑的那樣，我們對金光新能源科技控股公司的審查顯示，其三年的收入趨勢是其高市銷售率的原因，因爲這些趨勢看起來好於當前的行業預期。目前，股東對市銷率感到滿意，因爲他們非常有信心收入不會受到威脅。如果最近的中期收入趨勢繼續下去，在這種情況下，很難看到股價在不久的將來會強勁下跌。
我們不想在遊行隊伍中下太多雨，但我們也確實爲金太陽新能源科技控股公司找到了一個需要注意的警告標誌。
如果您不確定金太陽新能源科技控股的業務實力，爲什麼不瀏覽我們的互動式股票清單，其中列出了一些您可能錯過的其他公司，這些股票具有穩健的業務基本面。
對這篇文章有反饋嗎？對內容感到擔憂嗎？請直接聯繫我們。或者，也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論，我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議，也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意，我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之，華爾街沒有持有任何上述股票的頭寸。
