Despite Shenzhen Kaizhong Precision Technology's stock surge, its P/S ratio remains modest due to lower three-year growth than industry forecast. Investors expect limited growth rates to continue, paying less for the stock. Share price reversal seems unlikely.

The company's low ROE and high debt usage make it a less appealing investment. Its performance could be impacted if borrowing becomes less accessible due to changing credit markets. High quality companies typically have high ROE and low debt.

Shenzhen Kaizhong Precision Technology's high P/E ratio, despite declining earnings, may worry investors. The market's expected 42% growth contrasts with the company's performance. Investors may hope for a business turnaround, but continued earnings trends could hit the share price.