Despite a recent surge, Dongguan Chitwing Technology's high P/S ratio and declining revenue pose a risk to shareholders. If medium-term revenue trends persist, this could negatively impact the share price.

Concerns are raised about the company's use of debt due to falling revenue and a CN¥168m EBIT loss. Its strained balance sheet and negative free cash flow of CN¥138m over the last year make it a risky investment.

Dongguan Chitwing Technology's high P/S ratio is alarming considering its recent poor growth. If medium-term revenue trends persist, it could severely affect the share price. The company's declining revenue and the industry's projected growth don't justify the current high P/S ratio.

The company's growing debt and simultaneous decrease in revenue makes it a potential risk. The EBIT loss of CN¥168m and use of debt suggests strain on the balance sheet.