Xiangtan Electric's ability to earn higher returns on the same capital employed is seen as impressive. The shift from losses to earnings reflects positively on the company, with growth in returns largely due to improved business performance.
Despite recent losses, the company's long-term growth trend may present a buying opportunity if the fundamental data continues to indicate sustainable growth. Specific attention must be given to the company's ability to grow earnings.
Xiangtan Electric Manufacturing's surprising net income growth, despite a lower ROE, might be due to good management decisions and a low payout ratio. Its policy of reinvesting all profits into the business may also contribute to its high earnings growth.
Xiangtan Electric Manufacturing Stock Forum
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