The company's trends suggest a mature business past the re-investment phase. The rise in liabilities over the last five years could introduce risk.

The low P/E valuation of Guangdong Baolihua is perceived as out of sync with its higher-than-market forecast growth, potentially suggesting that there may be significant unobserved threats to earnings. Market participants appear to expect significant future earnings volatility.

Guangdong Baolihua New Energy Stock's decreasing ROCE and continual decline in stock price dilutes investor confidence. Company's low reinvestment and possible rise in current liabilities indicate future performance risk.