Guangzhou Great Power Energy and Technology Stock Forum

The trend of decreasing returns despite increased capital employment is concerning. Although the stock has gained 54% over the last five years, if the underlying trends persist, it's unlikely to be a multi-bagger going forward.

The company's low P/E ratio, despite its superior earnings outlook and faster-than-market growth, suggests that investors are not convinced that the company can meet future growth expectations. This could be due to potential risks and anticipated earnings instability.

Despite analysts downgrading their revenue predictions, they anticipate the company's revenues will outperform the market. An uptick in pessimism about the company’s intrinsic worth is signaled by the cut in consensus price target. The dilutive stock issuance previously might be behind this bearish perspective.

Guangzhou Great Power Energy and Technology's declining ROCE trend despite capital raises is worrying. Despite encouraging shareholder returns recently, underlying trends must improve for future sustainable high returns.