Huachangda Intelligent Equipment Group Stock Forum

Despite a recent share price surge, the company's high P/E ratio and deteriorating earnings make it less attractive. Investors should consider growth trends and earnings trajectory before investing.

Despite Huachangda's declining earnings and less attractive growth rates, its high P/E ratio indicates investors' hope for a business turnaround. However, if the P/E aligns with recent growth rates, there's a risk of disappointment and potential share price decline unless medium-term conditions significantly improve.

The declining ROCE and decreasing capital employed could indicate a mature and shrinking business possibly in structural decline. The stock has fallen 48% over the last five years, suggesting investors are recognizing these negative trends.