The market may not be judging Jiangsu Eastern ShenghongLtd based on earnings growth, as the change in EPS doesn't seem to correlate with the change in share price. It's possible that management is prioritizing revenue growth over EPS growth. Despite the recent sell-off, long term shareholders have made a gain of 16% per year over half a decade, indicating potential long term sustainable growth.
The low ROE of Jiangsu Eastern ShenghongLtd is not seen as favorable, especially considering the company's high debt levels. The company's ability to generate profits and return them to shareholders is questioned due to these factors.
Despite EPS drop, market may be focusing on other growth factors beyond earnings. Company's robust revenue growth hints at possible sacrifice of current EPS. The striking TSR exceeding share price return shows dividends playing a bigger role. The current sell-off could potentially offer investment opportunities due to the prospect of long-term growth.
Jiangsu Eastern Shenghong Stock Forum
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