Despite declining earnings, the company's high P/E ratio indicates investor optimism. However, without significant medium-term improvements, this high P/E may not be sustainable, risking a share price decline.

Despite ShaoYang Victor Hydraulics' poor growth, it trades at a high P/E. Investors hope for a business turnaround, but if earnings trends persist, the share price may drop, lowering the P/E and risking investments.