Despite recent earnings growth, the market anticipates a 41% growth for L&K Engineering (Suzhou)Ltd next year, significantly higher than its recent medium-term rates. This expectation has kept its P/E below most companies, as shareholders predict it will continue to lag behind the market.
Investors may believe the company's strong earnings growth will underperform the market, leading to its low P/E ratio. Unseen threats to earnings could be preventing the P/E ratio from reflecting this positive performance.
L&K Engineering Stock Forum
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