SEHK:460Pharmaceuticals
Sihuan Pharmaceutical (SEHK:460) Stock Price Lags Profit Recovery as Valuation Stretches
Sihuan Pharmaceutical Holdings Group entered these results following a period of weak share price performance, with the stock down over the past week, month and quarter, yet trading on a rich P/E of 21x. That is a set up for emotional trading. The headline from this half year is simple. Profitability has firmed up, with basic earnings per share at C¥0.0249 on revenue of C¥1,161.2m. The tug of war now is between investors who are concerned about the valuation strain and those who see a company...