Despite Shenzhen Fenda Technology's share price rise, its high P/E ratio and falling earnings make it less appealing. The continuation of recent earnings trends could negatively impact the share price, making it a risky investment.

Investors may be neglecting mediocre growth rates due to anticipation of a turnaround. However, without a significant improvement, optimistic pricing may lead to future disappointment.

While Shenzhen Fenda Technology's ROE isn't striking, high earnings retention and efficient management may be boosting its net income growth. As profits are reinvested into the business, this could imply a robust long-term performance.