Shenzhen YHLO Biotech's high P/E ratio may not be justified by its growth outlook. Investors may face disappointment if the P/E falls to levels more in line with the growth outlook. The current high share price is seen as unreasonable given the predicted future earnings.

Despite an 8.6% return for shareholders over the last year, caution is urged when biting into Shenzhen YHLO Biotech. The firm's diminishing returns on increasing capital drove concerns of declining financial efficiency.