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.

Despite a market return, Dongfeng Electronic Technology's inconsistent finances, low ROE, and flat earnings growth could negatively impact future performance and stock price. High reinvestment rate doesn't translate to expected earnings growth.