CMSC Stock Forum

The market's past overconfidence is evident in the steeper share price decline of 12% compared to the EPS decrease. The company's recent performance, with a total shareholder return of 3.0% in the last twelve months, suggests possible improvement.

China Merchants Securities' low P/E ratio reflects its poor earnings outlook. Investors foresee limited growth, justifying a lower stock price. The potential for earnings improvement isn't seen as significant enough to warrant a higher P/E ratio, making a share price surge unlikely.

The recent share price momentum suggests that the company is doing better recently, which might warrant a closer examination of the stock. However, there's an indication of 1 warning sign in the Company's investment analysis that needs consideration.

Before the release of this financial report, except Alibaba’s core commerce business, investors are also focused on cloud computing revenue even though it still accounts for under 10% of total sales. That’s because investors see Alibaba’s cloud efforts as key to the company’s future growth prospects and profitability.
“Cloud growth reacceleration is key for me to turn...