Shenzhen Jieshun Science and Technology's high P/E ratio is justified by its forecasted growth, outpacing the wider market. Investors see low risk of earnings deterioration, hence a share price drop is unlikely soon.
The declining ROCE and flat capital employment show signs of a mature business facing new competition or smaller margins. Despite these trends, the stock has soared 108%. Without a reversal in these trends, long-term performance might not be promising.