Due to Nanjing Gaoke's shrinking earnings and perceived inability to outperform the market, it has a low P/E ratio. Without potential earnings improvements, both the P/E ratio and the share price might stay stagnant.
Nanjing Gaoke's low P/E ratio reflects its falling earnings and market view of its possible underperformance. Without earnings hike, the P/E ratio and share price may not substantially improve soon.