The high P/E ratio is concerning given the company's declining earnings. Unless there is a significant improvement in the company's medium-term conditions, the current prices may not be sustainable. The high P/E ratio indicates that investors are bullish, but the recent earnings trends could negatively impact the share price.

Despite poor financial performance and declining earnings, the company's high P/E ratio suggests investors expect a business turnaround. However, if the P/E aligns with recent negative growth rates, shareholders may face disappointment.

Junhe Pumps' consistent revenue growth and rewarding dividend payments appear to be more crucial than EPS in driving its stock price, according to investors.