Anji Microelectronics Technology (Shanghai) Co., Ltd. (SHSE:688019) shares have continued their recent momentum with a 26% gain in the last month alone. Taking a wider view, although not as strong as the last month, the full year gain of 19% is also fairly reasonable.
After such a large jump in price, Anji Microelectronics Technology (Shanghai) may be sending bearish signals at the moment with its price-to-earnings (or “P/E”) ratio of 45.5x, since almost half of all companies in China have P/E ratios under 36x and even P/E’s lower than 21x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
Recent times have been pleasing for Anji Microelectronics Technology (Shanghai) as its earnings have risen in spite of the market’s earnings going into reverse. It seems that many are expecting the company to continue defying the broader market…
