Shinghwa Advanced Material Group's share price and EPS have sharply declined, potentially offering a chance for long-term investors if growth remains sustainable. However, there are 3 warning signs investors should note.

Shinghwa Advanced Material Group's P/S ratio is less attractive due to the company's recent performance and the industry's growth forecast. Investors expect limited growth rates to continue, willing to pay less for the stock. Medium-term conditions form a share price barrier.

Despite liabilities, Shinghwa has net cash, not much debt. But, revenue shrinkage and EBIT loss warn caution. Future profit will tell if balance sheet can improve. Three caution signs for Shinghwa suggest vigilance.

Despite the recent disappointing performance, the overall sentiment remains positive due to the company’s strong five-year track record and impressive total shareholder return. The current sell-off may present opportunities, if solid fundamentals hint at long term growth.