SEHK:2420Specialty Retail
Zibuyu Group (SEHK:2420) Stock Rises On Growth As Cash Quality Questions Linger
Investors pushed Zibuyu Group slightly higher into these results, with the stock up about 4.3% over the past week and modestly positive over the past month, even though the 3 month return is still in decline. The earnings headline is simple: profit growth stayed solid while the stock still trades on a trailing P/E of about 5.6x, below both peer and industry averages.
The real tension today is between that low valuation and the quality of the profit. Net margin for the last 12 months sits at...