ZheJiang HuaSheng Technology's high P/E ratio may be due to investor expectations of outperforming the market. However, its recent poor growth rate could negatively impact the share price.

Despite ZheJiang HuaSheng Technology's poor growth, it trades at a high P/E. Investors hope for a business turnaround, but if medium-term earnings trends persist, the share price may drop, lowering the P/E and risking investments.

The declining ROCE and sales, coupled with increased capital employment, raise concerns about ZheJiang HuaSheng TechnologyLtd's long-term performance. Unless these trends reverse, it may be advisable to consider other investment options.