SEHK:2597Wireless Telecom
Beijing Xunzhong Communication Technology (SEHK:2597) Stock Price Flags Profit Quality Risk
Beijing Xunzhong Communication Technology just faced a sentiment check. The stock has fallen 8.7% over the past week even though the latest half year delivered C¥326.25m in revenue and kept the telecom earnings story intact. The headline is profit quality, not raw profit.
Trailing earnings are 13% higher over the last 12 months. However, the P/E sits at about 63.7x against an industry closer to 17.7x. That valuation premium depends heavily on earnings that already carry a high non cash...