Despite an already strong run, Shanghai Hajime Advanced Material Technology Co., Ltd. (SZSE:301000) shares have been powering on, with a gain of 41% in the last thirty days. The last 30 days bring the annual gain to a very sharp 70%.
In spite of the firm bounce in price, it’s still not a stretch to say that Shanghai Hajime Advanced Material Technology’s price-to-earnings (or “P/E”) ratio of 36.6x right now seems quite “middle-of-the-road” compared to the market in China, where the median P/E ratio is around 37x. Although, it’s not wise to simply ignore the P/E without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
Recent times have been pleasing for Shanghai Hajime Advanced Material Technology as its earnings have risen in spite of the market’s earnings going into reverse. One possibility is that the P/E is moderate because investors think the company’s earnings will be less…
