State Grid Yingda Stock Forum

State Grid YingdaLtd's promising trends in ROCE and capital employed, and its ability to profitably reinvest capital and reduce reliance on current liabilities are commendable. However, these fundamentals may not be fully recognized by investors yet, as the stock has only returned 1.7% over the last five years.

Market optimism about the company's growth may have been excessive three years ago. Despite share price decline, opportunity may exist as revenue and EPS grow. However, low dividend yield suggests share price isn't based on its dividend.

Investors attribute the low P/E ratio of State Grid YingdaLtd to its recent sluggish growth, inconsistent with market forecast. The less-than-expected growth trailing the market leads to loss of investor faith, reluctance to increase P/E ratio, and limited potential for share price increases.