Despite lower EPS, market perception of Sichuan Yahua Industrial Group remains unconcerned. The sell-off could be a potential opportunity if fundamentals suggest sustainable growth. However, investors should note 3 warning signs for the company.

Sichuan Yahua Industrial Group's low P/E ratio is due to its poor earnings outlook and the market's anticipation of limited growth. Investors are paying less for the stock, with little chance of a significant price increase soon.

The increasing ROCE and the growth of employed capital at Sichuan Yahua Industrial Group signify favorable trends that underlie its potential as a multi-bagger, deserving further examination despite certain risks the company carries.