The decline in EPS has likely disappointed the market, making investors hesitant to buy. Despite the recent share price increase, the long-term performance has been less impressive, significantly under-performing the market.

Jiangsu Hengrui Medicine's high P/E ratio is backed by its promising earnings outlook. Investors retain the stock, expecting a bright future. The risk of earnings decline is not seen as substantial enough to justify a lower P/E ratio, bolstering the share price.