Beijing Beida Jade Bird Stock Temptingly Cheap But Growth Questions Loom
• Beijing Beida Jade Bird has a very low P/E ratio of 2.6x compared to over 10x for many HK companies, making it potentially attractive • However, earnings declined 41% last year which raises questions about future growth potential • Over the last 3 years, EPS has still grown an impressive 177% in total • Expected market growth of 22% outpaces Beijing Beida Jade Bird's recent medium-term growth rates • Investors seem unconvinced of future earnings growth potential, putting downward pressure on the P/E ratio