Shanghai Luoman Technologies Inc. Stock Forum

Despite lower earnings, the high P/E ratio persists due to forecast growth outpacing the broader market. Investors see limited risk of earnings deterioration to warrant a lower P/E ratio. Share price isn't anticipated to drop significantly soon.

The low ROE and declining net income over the past five years are concerning. Despite high reinvestment, it's not benefiting investors and negatively impacting earnings growth. However, analysts expect significant improvement in earnings growth rate.

Shareholders in Shanghai Luoman Lighting Technologies anticipate a prosperous trajectory. Their strong revenue forecasts and P/S above most other companies support this optimism.

Even though the ROCE is temporarily lower, the reinvestment in growth and increased sales might bode well for future stock performance. The stock has already returned 49% to shareholders over the last year.