Investors' high expectations for Shanghai Prisemi ElectronicsLtd, reflected in its high P/E ratio, may be misplaced given the company's weak earnings and slower market growth. Unless medium-term conditions significantly improve, current prices may be unreasonable.

Despite more capital being deployed, returns and sales at Shanghai Prisemi ElectronicsLtd have fallen. Long term shareholders have seen a 41% depreciation in their investment over the last year, suggesting the market disfavors these trends.