HK Electric's high P/E ratio may not be justified due to its inferior earnings outlook. The predicted future earnings may not support the high P/E ratio, making current prices seem unreasonable.

The market is seemingly wary of the company's less than expected EPS drop amid falling share prices. Despite slower losses, a 5% annual decline over the last five years might worry shareholders. Warning signs have been spotted for HK Electric Investments.

The company seems past its growth phase and not reinvesting, indicating it may not become a multi-bagger. Market confidence is low, suggesting other options might be better for a multi-bagger. However, there are some risks associated with the company.