Shenzhen Sunnypol OptoelectronicsLtd's declining ROCE and failure to boost sales despite reinvestment hint at its limited potential to be a multi-bagger. The stock's return to shareholders has been flat over the past five years.

Despite poor earnings, the high P/E ratio indicates investors anticipate strong future growth and are ready to pay more for the stock. Earnings deterioration doesn't seem to worry investors currently.

Surprise earnings growth for company with rather low ROE, implies efficient management and low payout ratio. Shared profits and reinvestment strategy may factor into continued strong earnings growth.