Hefei Chipmore Technology's high P/E ratio is backed by its remarkable growth, surpassing the market. Shareholders trust in the company's earnings and anticipate it to keep outperforming the market. The company's balance sheet is another crucial risk analysis area.

Despite a low ROE, Hefei Chipmore TechnologyLtd's significant net income growth and high rate of reinvestment suggest potential for long-term stock price increase. The company's growth and financial indicators may be driving factors behind this potential.

The company's conservative balance sheet could potentially eliminate its debt, but the frequent EBIT plunge could pose difficulties for the stock. Despite net cash, substantial negative free cash flow over the last three years increases the risk.