Anhui Conch Cement's non-operating revenue spike may mislead investors about the company's true earnings power. Also, there are 2 warning signs investors should note.

Anhui Conch Cement's low P/E ratio reflects investors' pessimism about its poor earnings performance and limited future growth, leading to a reduced willingness to pay more for the stock.

Despite Anhui Conch Cement's declining earnings and the market's 15% gain, investors' expectations remain unchanged. The company's poor performance and total 6.1% loss contrast with longer-term shareholders' losses of 7% over five years.