The company is reinvesting in the business for growth, but sales haven't increased significantly. The trends aren't typical of multi-baggers, and investors seem hesitant that the trends will improve.
Despite a seemingly low ROE, Dongguan Aohai Technology demonstrates decent growth, primarily due to its earnings being above industry averages and high earnings retention. The company's future earnings expansion is expected to continue, according to latest analyst forecasts.
Falling ROCE and increased capital employment at Dongguan Aohai Technology are alarming as they don't suggest a 'multi-bagger' stock. Despite reinvestment, sales have not grown significantly. The stock has dropped by 47% in the past three years, indicating market skepticism.
Dongguan Aohai Technology Stock Forum
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