Investors expect the company to outperform the market, hence the high P/E ratio. However, with declining earnings and predicted market growth, the high P/E ratio and share price surge could decline unless medium-term conditions improve significantly.
The high P/E ratio may be due to investors' expectations of a turnaround in the company's business prospects. However, if the declining earnings trend continues, it could significantly impact the share price and pose a risk to investors.
Dong Feng Electronic Technology Stock Forum
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