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    Investors Don't See Light At End Of Kelfred Holdings Limited's (HKG:1134) Tunnel And Push Stock Down 28%

    Simply Wall St·12/22/2025 22:46:10
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    Kelfred Holdings Limited (HKG:1134) shares have retraced a considerable 28% in the last month, reversing a fair amount of their solid recent performance. The last month has meant the stock is now only up 8.0% during the last year.

    Since its price has dipped substantially, Kelfred Holdings may be sending very bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.3x, since almost half of all companies in the Medical Equipment industry in Hong Kong have P/S ratios greater than 5x and even P/S higher than 8x are not unusual. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.

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    Check out our latest analysis for Kelfred Holdings

    ps-multiple-vs-industry
    SEHK:1134 Price to Sales Ratio vs Industry December 22nd 2025

    What Does Kelfred Holdings' Recent Performance Look Like?

    Revenue has risen firmly for Kelfred Holdings recently, which is pleasing to see. It might be that many expect the respectable revenue performance to degrade substantially, which has repressed the P/S. If that doesn't eventuate, then existing shareholders have reason to be optimistic about the future direction of the share price.

    We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Kelfred Holdings' earnings, revenue and cash flow.

    Is There Any Revenue Growth Forecasted For Kelfred Holdings?

    Kelfred Holdings' P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than the industry.

    If we review the last year of revenue growth, the company posted a terrific increase of 26%. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. So it appears to us that the company has had a mixed result in terms of growing revenue over that time.

    Comparing that to the industry, which is predicted to deliver 41% growth in the next 12 months, the company's momentum is weaker, based on recent medium-term annualised revenue results.

    With this information, we can see why Kelfred Holdings is trading at a P/S lower than the industry. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.

    What We Can Learn From Kelfred Holdings' P/S?

    Having almost fallen off a cliff, Kelfred Holdings' share price has pulled its P/S way down as well. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

    In line with expectations, Kelfred Holdings maintains its low P/S on the weakness of its recent three-year growth being lower than the wider industry forecast. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.

    Don't forget that there may be other risks. For instance, we've identified 3 warning signs for Kelfred Holdings (2 shouldn't be ignored) you should be aware of.

    If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).