Shanghai Sheng Jian Environment Technology Co., Ltd. (SHSE:603324) shareholders would be excited to see that the share price has had a great month, posting a 33% gain and recovering from prior weakness. Longer-term shareholders would be thankful for the recovery in the share price since it’s now virtually flat for the year after the recent bounce.
In spite of the firm bounce in price, given about half the companies in China have price-to-earnings ratios (or “P/E’s”) above 28x, you may still consider Shanghai Sheng Jian Environment Technology as an attractive investment with its 23.7x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s limited.
Shanghai Sheng Jian Environment Technology certainly has been doing a good job lately as it’s been growing earnings more than most other companies. One possibility is that the P/E is low because investors think this strong…
