Despite Xinya Electronic's recent poor growth, it trades at a P/E above the market. Investors overlook this, hoping for a business turnaround. Yet, the high P/E and falling earnings challenge the stock price justification.

Xinya Electronic's low P/E ratio is due to slow growth and falling earnings. Without profitability improvement, the P/E could drop further, possibly disappointing shareholders. Recent medium-term conditions form a share price barrier at current levels.