The declining ROCE trend and lack of growth in Huabao Flavours & Fragrances are concerning. Unless there is a shift to a more positive trajectory in these metrics, it may be advisable to look elsewhere for investment opportunities.

Huabao Flavours & Fragrances' low P/E ratio is due to shrinking earnings and expected underperformance. Shareholders accept this as they foresee no pleasant surprises in future earnings. Without medium-term improvements, the share price may stagnate.

Despite financial disappointments, Huabao Flavours & Fragrances maintains steady investor expectations. EPS drop and dividend payments have impacted share price, whereas long-term underperformance likely impacted market confidence. However, a potential turnaround is anticipated.

Huabao's persisting downward ROCE trend raises concerns on future performance, indicating potentially better investment alternatives exist elsewhere despite slight stock rise.