Despite strong earnings, the company's statutory earnings may not clearly indicate ongoing productivity due to large unusual items. The sustainability of impressive EPS growth over the last three years is questionable due to the one-off nature of these items.
Zhejiang Dongri Limited's high P/S ratio may disappoint shareholders if it falls in line with recent growth rates. Without significant medium-term performance improvement, maintaining the current P/S ratio will be challenging.
Some investors remain optimistic about Zhejiang Dongri Limited's future despite its unsatisfactory short-term performance and declining revenues. These high stock prices may however not be sustainable, potentially affecting share price negatively.
Zhejiang Dong Ri Stock Forum
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