LEPU ScienTech Medical Technology (Shanghai) Co., Ltd. (HKG:2291) shareholders won’t be pleased to see that the share price has had a very rough month, dropping 25% and undoing the prior period’s positive performance. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 45% in that time.
In spite of the heavy fall in price, LEPU ScienTech Medical Technology (Shanghai) may still be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 18.9x, since almost half of all companies in Hong Kong have P/E ratios under 10x and even P/E’s lower than 6x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
