Despite Zhuhai Huajin Capital's share price surge, its high P/E ratio and declining earnings suggest current prices may be unsustainable. Investors overlook poor growth, hoping for a business turnaround, but without significant medium-term improvements, these prices may be unreasonable.
Despite EPS decline, market isn't overly concerned, possibly expecting faster drop. High P/E ratio of 51.85 suggests anticipated EPS rebound. However, company's poor long-term performance may need significant improvement to reverse trend.
High P/S ratio may reflect market expectations of the company outperforming its industry. However, with recent poor growth, these prices may not hold. Unless business prospects improve, share price may face pressure.
Zhuhai Huajin Capital's diminishing returns on capital raise concerns for long term performance, despite a 40% return to shareholders over the last five years.
Zhuhai Huajin Capital Stock Forum
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