Despite a recent surge, the company's declining earnings and underperformance could risk its share price. The P/E ratio seems high given recent earnings. Without medium-term improvements, current prices may be unreasonable.
Despite reinvestment of capital, the company's returns haven't increased. The stock's 5.5% return over five years suggests it may not be an attractive investment for those seeking a multi-bagger.
The company's disappointing earnings may continue, suppressing the P/E. The market is expected to grow by 41% in the next year, but the company's recent earnings results suggest a downward trend. If profitability doesn't improve, the P/E could fall further. Shareholders accept the low P/E, anticipating no pleasant surprises in future earnings.
Despite a recent share price drop, pleasing returns over the last three years are noted. However, declining EPS and revenue drop raise concerns. Dividends paid have boosted the company's TSR, indicating recent positive sentiment. Yet, a warning sign emerges in the company's investment analysis.
Shenzhen Easttop Supply Chain Management Stock Forum
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