Analyst sentiment for Xiamen Faratronic has declined, with a drop in revenue estimates and EPS numbers. Despite downgrades, analysts don't foresee long-term impact on valuation, but it could make investors cautious.

Shareholders may foresee a less prosperous future for Xiamen Faratronic, as its P/E ratio is lower than most companies. Without improvements in future earning forecasts, the share price isn't likely to surge.

Xiamen Faratronic has proven ability to produce high returns on escalating capital. With a 161% return in five years and sustained ROCE, it's a well-run entity with a solid business model.