Despite Greatoo Intelligent Equipment's share price rise, its declining revenue and high P/S ratio are worrisome. The company's poor growth rate, compared to the industry's predicted 25% growth, could impact its share price sustainability. Investors should consider these risks before investing.

The company's use of debt, coupled with its negative EBIT and declining revenue, raises concerns about its financial health. The balance sheet is considered far from match-fit and the stock is deemed risky.

Leo Group's low P/S ratio may reflect investors' anticipation of its underperformance in revenue growth compared to the industry. The company's recent three-year growth being lower than industry forecasts could continue to suppress the share price.

High P/S ratio hints at a possible company turnaround in near future, however, with poor growth and shrinking revenues, investors may overpay. Continued revenue trends likely to cause significant stock price decline.

There is a suggestion that there isn't a lot of correlation between past revenue performance and share price for Greatoo Intelligent Equipment. However, recent positive sentiment around the company and ongoing share price momentum may present an opportunity.

Greatoo Intelligent Equipment's falling revenue and EBIT loss raise doubts about its heavy debt use. The company also burned through CN¥434m in a year, adding risk. Four warning signs about the company also exist.