Despite Sichuan New Energy Power's stock boost, its P/E remains low due to an inferior earnings outlook. Investors believe the potential for earnings improvement doesn't justify a higher P/E ratio, limiting the likelihood of a strong share price rise soon.
Sichuan New Energy Power's financial performance looks promising with respectable ROE and impressive net income growth, despite stock price drop. The company's reinvestment of profits into the business has fueled this growth.
Due to Sichuan New Energy Power's forecast growth being lower than the market, the low P/E ratio does not appeal to many shareholders. Unless the company's conditions improve, this could continue to hinder its share price.
Sichuan New Energy Power Stock Forum
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