Zhejiang Asia-Pacific Mechanical & Electronic Stock Forum

The company's ROCE of 2.7% doesn't suggest high quality, and the decrease in capital employed over the past five years indicates it's not a potential multi-bagger. The rise in current liabilities over the last five years could pose risks.

Despite high P/E ratio, the company's recent medium-term earnings trajectory is less attractive. Investors may be overlooking limited growth rates, hoping for a business turnaround. Continuation of these trends could risk shareholders' investments and potential investors may pay an excessive premium.

Zhejiang Asia-Pacific Mechanical & ElectronicLtd's ROE may be weak, yet it boasts a high reinvestment rate and considerable earnings growth. Industry forecasts anticipate this growth to persist, deeming it promising for future performance.

While Zhejiang Asia-Pacific Mechanical's ROCE is headed in an upward direction, it remains relatively low. However, the ROCE improvement coupled with an impressive five-year stock return suggests promising fundamentals, warranting further investigation into the company.