The company's poor ROCE and capital increase indicate low return investments. Rising current liabilities suggest suppliers are funding a large business portion. Despite good stock performance, future prospects may not be promising without positive trend shifts.
Despite high P/E ratio, Guangdong KinLong Hardware is preferred due to its anticipated future earnings growth. Investors are confident that positive conditions will persist, supporting the current share price.
Despite increased capital investment, the flat ROCE is worrying. Although a 362% return was achieved in the past five years, if current trends continue, its future as a multi-bagger is questioned by analysts.
Despite near-term stock declines, the market values the company higher now than it did five years ago. Long-term investors have enjoyed a compound growth rate of 38% annually over the past five years.
Guangdong KinLong Hardware Products Stock Forum
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