Gansu Yasheng Industrial Stock Forum

Despite solid earnings growth, the company's high P/E ratio compared to recent growth rates may be worrisome. Investors hoping for a business turnaround may face disappointment if the P/E falls in line with recent growth rates. Continuation of medium-term earnings trends could pose a significant risk to shareholders' investments, with potential investors possibly paying an excessive premium.

The company's steady returns and capital employed suggest a mature operation, but lack of growth hints it may not be a future multi-bagger. The rise in current liabilities to 35% of total assets could introduce new risk elements.