Hengsheng Energy Stock Forum

Hengsheng Energy's P/E ratio remains low despite share price increase, likely due to unstable medium-term earnings trends. If trends persist, significant share price rise is unlikely.

Despite Hengsheng Energy's reinvestment for growth, sales remain stagnant. The stock's 8.6% gain over the past year may not promise future multi-bagger status. Investors should note the company's 2 warning signs.

The company's inconsistent earnings growth and underperformance compared to the market's forecasted 41% expansion may explain its lower P/E ratio. If recent medium-term earnings trends persist, a strong share price rise seems unlikely.

Questions arise over Hengsheng Energy's earnings as they may not reflect the free cash flow. It's implied that statutory profits might paint a too optimistic view of the real situation.