Despite China Biotech Services Holdings' drop in share price and earnings, its high P/E ratio suggests investor optimism. However, weak earnings and slower growth could risk further price decline, challenging to justify without significant medium-term improvements.

Substantial growth is required by the firm to validate its elevated P/E ratio, but the sustainability of its high stock price is dubious amid recent inconsistencies and dwindling profits. Its high P/E ratio and slower growth rate might contribute to a potential share price fall, risking shareholders and prospective investors.