Zhejiang Jingxing Paper's high P/E ratio is alarming considering its recent sluggish growth. Investors overlook this, hoping for a business turnaround. However, without significant improvement in medium-term conditions, these prices may not hold.

Zhejiang Jingxing Paper's ballooning debt and sizeable EBIT loss pose a potential risk to its balance sheet integrity and stock performance. The firm's capability to meet its obligations amid dwindling earnings and cash burn is uncertain, making the stock an investment hazard. Yet, the stock maintains less perceived threat considering the company's market capitalization size.