Wenzhou Yihua Connector's high P/E may suggest investors' optimism for the future turnaround and market outperformance. Its expected future earnings growth surpasses market predictions, underpinning strong support to its share price.
The company's utilisation of substantial debt alongside a relatively low ROE may deter investors. High ROE achieved without debt is often seen as a sign of a high-quality business. Moreover, possible changes in the lending market may impact the firm's ability to borrow.
Investors should question Wenzhou Yihua Connector Co., Ltd's profit performance as underlying profit might be weaker than it seems. Unusual items and decreased earnings per share necessitate further analysis.
Wenzhou Yihua Connector Stock Forum
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