MING YUAN CLOUD (00909) saw its stock soar 5.08% in Friday's intraday trading session, as investors continued to bid up the shares despite concerns raised about the company's fundamentals and valuation metrics.

A recent analysis by Simply Wall St highlighted that MING YUAN CLOUD's price-to-sales ratio of 3.4x is elevated compared to its industry peers in Hong Kong's software sector. This comes despite the company's revenue declining in recent years, with a 5.9% decrease in the last year and a 20% drop over the past three years.

While analysts forecast MING YUAN CLOUD's revenue to grow by 10% annually over the next three years, this projected growth rate is noticeably lower than the industry average of 19%. The analysis suggests that investors may be overly optimistic about a turnaround in the company's business prospects, setting themselves up for potential disappointment if the price-to-sales ratio falls in line with the relatively weak growth outlook.