Dnake (Xiamen) Intelligent Technology's declining ROCE trend is worrying. Despite reinvestment, returns are shrinking. The stock has dropped 45% in three years, reflecting investor doubt about future trends. The company seems to lack multi-bagger potential.

The company's P/E ratio is moderate, but without significant earnings growth, it may not outperform the market soon. The lack of growth and medium-term earnings trajectory compared to market's expansion forecast is concerning. The current P/E ratio may not be sustainable if recent earnings trends continue, potentially leading to a share price decline.

Given similar ROE to industry average and declining net income, it's questionable if the company's share price momentum can be maintained. The efficient use of profits seems dubious with a median payout ratio of 38%, implying potential business decline.