Investors believe HuafangLtd will underperform the industry due to its low P/S ratio. The company's declining medium-term revenue has led to a pessimistic outlook for future growth. If these trends persist, the share price is unlikely to see significant movement.

The stock's decline could be due to unimpressive revenue growth and profitability. Investors should consider the company's potential for profitability or faster revenue growth. Despite a 20% loss over the past year, the company's performance is less severe than the market's 25% loss.