CHINACOMSERVICE Stock Forum

Market reaction hints EPS may not reflect business performance. Share price drop could be due to previous optimism and subsequent disappointment, despite EPS improvement. Short term gain suggests brighter future, despite long term loss.

The company's declining ROCE trend and high liabilities-to-assets ratio are worrisome. Despite reinvestment, returns are dwindling. The stock's 47% loss over five years reflects market skepticism about trend improvement. Better high-return opportunities may exist elsewhere.

The low P/E ratio of China Communications Services reflects the market's expectation of restricted future growth, which doesn't align with overall market forecasts. This causes perceived risks for shareholders of a less bright future, potentially limiting substantial share price rise shortly.

The market's past high growth expectations contrast with recent promising share price leaps, possibly indicating a company turnaround. This change alongside dividend payments could explain the gap between shareholder return and share price return.

China Communications Services' outlook seems grim due to dwindling returns and heavier dependence on suppliers or short-term creditors. With the stock decreasing 35% over the past five years, investor optimism may be dwindling.