Investors are paying a high P/E for Chengdu Zhimingda Electronics due to strong future growth expectations. Shareholders are confident in the company's future earnings and do not foresee a significant drop in the share price soon.

Despite Chengdu Zhimingda Electronics' strong return and reinvestment, its low earnings growth is worrying. Outside factors may hinder growth. Yet, analysts predict a boosted company's earnings growth rate.