Shanxi Hi-speed Group Stock Forum

Shanxi Road & Bridge's commendable ROE is overshadowed by concerning high debt use. The mix of low ROE and significant debt is unappealing. Top-tier companies usually pair high ROE with low debt.

The observation suggests Shanxi Road & Bridge Ltd's low P/E is due to recent medium-term growth being lower than market predictions. It appears shareholders anticipate these limited growth rates to persist, hence their reluctance to pay a higher price for the stock. Without an improvement in medium-term earnings trends, the share price is unlikely to see notable growth soon.

Shanxi Road & Bridge's recent share sell-off could offer opportunities for sustainable long-term growth. Despite market nervousness possibly impacting share prices, long-term investors have noted a 3% annual return over five years.