The market reflects the company's positive outlook with shares trading at industry price multiples. The encouraging outlook suggests a deeper look into factors like balance sheet strength for the next price drop.
Despite the falling ROCE, the company's growth in revenue and assets, as well as its ability to reduce liabilities, are encouraging signs. The stock has also climbed 13% over the last year, indicating investor optimism about the company's future.
Despite rising revenue and capital, Shenzhen Urban Transport's declining ROCE is concerning. Investors may have already forecasted underlying trends, given the stock's 57% return in the past year. However, the business's operations being increasingly funded by its own money points to less efficiency in ROCE generation.
Shenzhen Urban Transport Planning Center Stock Forum
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