Dalian BIO-CHEM's low P/E ratio is due to its three-year growth being lower than market forecast. Investors think the potential for earnings improvement doesn't justify a higher P/E ratio. Unless medium-term conditions improve, they will continue to form a barrier for the share price.

The increasing ROCE and the consistent reinvestment of capital at higher rates of return indicate that Dalian BIO-CHEM has the potential to be a multi-bagger. It's worth researching the company further to see if these trends are likely to persist.

Dalian BIO-CHEM's low P/E ratio, due to trailing market expectation earnings trends, prompts shareholder skepticism, unless medium-term conditions improve.