The company's strained balance sheet, high debt level, and CN¥658m EBIT loss make it a risky investment. Its falling revenue and last year's loss of CN¥202m are among at least 2 concerning warning signs.

The company's P/S ratio is typical for a company expected to deliver moderate growth. However, the recent decline in revenue and inconsistent growth could potentially weigh down the shares, posing a risk to shareholders.

Despite strong earnings growth, the company's P/E ratio mirrors the market, indicating investor skepticism about sustained growth. Recent medium-term earnings trends aren't impacting the P/E as expected, hinting at potential risks. Some investors may foresee earnings instability, despite conditions that would typically boost share price.

The company's high debt level relative to its market capitalization implies potential shareholder dilution. The negative EBIT and revenue drop over the past year raise concerns about the company's debt management. The stock is deemed very risky.

Huafu Fashion, despite recent returns, raises concern due to its declining revenue and stock prices over the last three years, casting doubt on its business stability.

The company's falling revenue and EBIT loss of CN¥658m, in combination with its balance sheet liabilities compared to cash, make it risky. Turning its trailing twelve-month loss of CN¥202m into a profit would reduce this risk.

Huafu Fashion's low P/S ratio hints at investor caution over its future revenue stability and potential risks, which could have influenced a lower selling price for its shares.

Given Huafu Fashion's high debt level, shrinking revenue, and negative EBIT, the situation is seen as risky and concerning. The company would have to improve its financial performance and strengthen its balance sheet to alleviate these risks.

The significant growth in the share price is unexpected given the consistent decline in revenue, indicating that shareholders see a promising future for the company. However, given current market momentum, further investigation into the company may be warranted.

Caution is required despite share price growth due to the discrepancy between the increase and revenue's downward trajectory. Possible business improvements contrast with 3 warning signs investors should consider.