Revenue DeclineSustained topline contraction reduces operating scale and limits the firm's ability to absorb fixed costs, slowing margin expansion and cash generation. If demand or order intake remain weak, growth headwinds could impair long-term market position and investment capacity in residential projects.
Low Net Profit MarginA net margin near 3% leaves a thin buffer against cost inflation, interest expense, or project delays. Low bottom-line profitability constrains retained earnings and reduces the company's ability to self-fund expansion or absorb cyclical shocks, increasing reliance on external financing.
Earnings ContractionA sharp drop in EPS indicates meaningful earnings pressure that can reduce reinvestment, dividend capacity, and debt paydown ability. Persistent EPS weakness may signal structural margin or demand issues, limiting long-term return potential and strategic flexibility for management.