Xinfengming Group Stock Forum

Analysts are more negative on Xinfengming Group after recent results, expecting a substantial slowdown in revenue growth. The company's projected annual growth rate of 7.2% till 2024 is slower than industry peers' 17%.

Despite high reinvestment, the company's low ROE indicates it's not benefiting investors, negatively impacting earnings growth. Approach the company's performance and future prospects with caution.

The mix of a low ROE and high debt is unattractive. High quality firms typically have high ROE and low debt. The market usually increases the price of high quality businesses to reflect this.

Xinfengming Group's high P/E ratio is justified by its expected growth rate, keeping shareholders from selling. They believe future earnings are secure, and a significant share price drop is unlikely soon.

Xinfengming Group's lower ROE and high debt usage hints at potential risk. High ROE companies with low debt are considered superior.

Xinfengming Group is considered overpriced as per price-to-earnings model, trading above its peers. Current investors may want to reconsider holdings, whereas new investors might want to delay purchase as stock seems inflated despite optimistic outlook.

Given Xinfengming Group's debt, liabilities, and EBIT loss, it's unwise to accumulate more debt. Their strained balance sheet calls for repair. The stock poses a risk due to high leverage against market capitalization and monetary losses.