Chongqing Three Gorges Water Conservancy and Electric Power's declining ROCE trend is concerning. Despite reinvestment, returns are shrinking and shareholder returns have been flat over the last five years. Underlying trends suggest better opportunities elsewhere.

Despite falling earnings, the company's stock maintains a high P/E ratio as it is anticipated to significantly outperform market growth in the near future, thus shareholders are reluctant to sell. However, potential risks need to be carefully evaluated.

The stock's short-term underperformance and last year's significant EPS drop indicate existing risks. The declining share price and EPS might suggest unresolved company issues, yet potent recovery chances still exist for contrarians.