Despite recent earnings growth, the company's annualised growth rates are less attractive compared to the broader market's forecast. Its P/E is back to the market median, but its three-year growth is lower than the market forecast. This earnings performance may not support a positive sentiment for long, making these prices seem unreasonable.
The company's respectable earnings growth, seen as underperforming the broader market, results in a low P/E. Despite strong medium-term growth, investors expect this limited rate to persist. Without improvements in earnings trends, share price may not rise significantly soon.
Suzhou Hengmingda Electronic Technology's declining ROCE and raised capital are concerning for investors. Despite an uptick in sales growth and business reinvestment, returns aren't growing. Further investigation into this stock is advisable.
Suzhou Hengmingda Electronic Technology Stock Forum
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