KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Hangzhou Arcvideo Technology Co., Ltd. (SHSE:688039) shares have soared 34% in the past month, bringing the stock’s annual gain to an impressive 96%.
Valuation in Focus:
The company’s price-to-sales (P/S) ratio stands at 16.4x, more than double the median of China’s software industry (~7.7x).
Such a high valuation raises questions, especially as revenue fell 14% last year and is down 31% over the past three years.
Why Investors Are Paying Up:
Despite recent revenue declines, analysts expect a sharp turnaround, forecasting 62% revenue growth over the next year, compared to the industry’s projected 24%. This anticipated rebound appears to justify the premium P/S multiple.
Investor Sentiment:
The recent rally suggests investors are betting on a revenue recovery and are willing to hold despite the company’s historical declines. With expectations running high, any miss in growth could put pressure on the stock.
Summary: Hangzhou Arcvideo’s surge reflects confidence in a strong revenue rebound, but its lofty valuation means the company will need to deliver on growth forecasts to sustain momentum.
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