The company's use of significant debt to boost returns, resulting in a low ROE, is viewed unfavorably. High-quality businesses are typically those that can achieve high ROE without debt.

Lower P/E ratio for Shenzhen Gas suggests investors anticipate limited growth ahead, buying stock at a discount. It's unlikely shares will surge due to projected earnings.

Despite a five-year stock gain of 26%, Shenzhen Gas' average ROCE and dependence on suppliers or short-term creditors indicate potential risks. The stagnant returns on increasing capital investments suggest it might not be ideal for investors seeking multi-bagger opportunities.