New Huadu Technology Co., Ltd. (SZSE:002264) has seen a significant increase in its share price, with a 25% gain over the past month and a 21% rise over the last twelve months. Despite this surge, the company’s price-to-earnings (P/E) ratio of 21.7x is lower than many other companies in China, indicating potential bullish signals.
The company has shown positive earnings growth compared to its competitors, with earnings per share increasing by 123% last year and 177% in aggregate over the past three years. Analysts expect a further 33% increase in EPS in the coming year, although this is lower than the market’s predicted growth of 39%. This lower growth forecast may be contributing to the company’s lower P/E ratio, as investors may be concerned about the company’s future prospects.
While New Huadu Technology’s stock has received a boost, its P/E ratio remains relatively low. Analyst forecasts suggest that the company’s earnings outlook is not strong enough to justify a higher P/E ratio, which could impact future share price performance. Investors should consider the risks associated with investing in the company, particularly in light of its earnings growth potential. This article by Simply Wall St provides a general analysis of the company’s performance, but does not constitute financial advice.
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