SEHK:2416IT
Edianyun (SEHK:2416) Stock Falls As Profitability Improves And Risks Stay In Focus
Edianyun stock closed at HK$3.73 after a choppy week that left shares down about 12% over seven days, even though the profit story is being described as stronger. The market focused on the short term. The earnings release highlighted a net profit margin of 13.6% and trailing earnings that are more than double the level reported last year.
The main focus now is valuation. Edianyun trades on a P/E of 7.1x compared with higher industry and peer averages, and below the indicated fair value of...