The company's low ROCE and high reliance on short-term creditors are concerning. The increase in capital employed suggests poor investment choices. The stock's low return over the past five years reflects awareness of these trends.
Given the company's recent weak earnings and slower than market growth, the share price is at risk of declining, which could lower the P/E ratio. Unless recent medium-term conditions improve, these prices may not be reasonable.
Henan Hengxing Science & Technology Stock Forum
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