Shanghai Aiyingshi Co.,Ltd's low P/E ratio is due to limited future growth expectations and weaker earnings. Investors are paying less for the stock due to these conditions, forming a barrier for the share price.

The market's previous optimism about the stock was misplaced, given the less than expected reduction in EPS. The company's underperformance in the past five years might be a red flag, but contrarian investors could see a potential turnaround.