Why Investors Shouldn't Be Surprised By Shanghai Electric Group Co., Ltd.'s (HKG:2727) P/E

Simply Wall St.02-10

When close to half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") below 12x, you may consider Shanghai Electric Group Co., Ltd. (HKG:2727) as a stock to avoid entirely with its ...

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(HKG:2727) as a stock to avoid entirely with its ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/capital-goods/hkg-2727/shanghai-electric-group-shares/news/why-investors-shouldnt-be-surprised-by-shanghai-electric-gro\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4211","symbol_name":"区域性银行","start_time":0,"source_url":"https://simplywall.st/stocks/hk/capital-goods/hkg-2727/shanghai-electric-group-shares/news/why-investors-shouldnt-be-surprised-by-shanghai-electric-gro","article_id":"2610699733","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3052000-choice2-main-header/1585186800829"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/capital-goods/hkg-2727/shanghai-electric-group-shares/news/why-investors-shouldnt-be-surprised-by-shanghai-electric-gro","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2610699733","pubTimestamp":1770683685,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When close to half the companies in Hong Kong have price-to-earnings ratios (or \"P/E's\") below 12x, you may consider...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4211":"区域性银行","ISBC":"投资者银行","BK1205":"重型电气设备","BK1522":"燃料电池","BK1594":"碳中和概念股","02727":"上海电气","BK1546":"电力设备股"},"translate_title":"为什么投资者不应该对上海电气集团股份有限公司（HKG：2727）的市盈率感到惊讶","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"91348":1.5,"02727":1.5,"ISBC":1.5},"content_text":"When close to half the companies in Hong Kong have price-to-earnings ratios (or \"P/E's\") below 12x, you may consider Shanghai Electric Group Co., Ltd. (HKG:2727) as a stock to avoid entirely with its 70.5x P/E ratio.  Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty.    This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.  While the market has experienced earnings growth lately, Shanghai Electric Group's earnings have gone into reverse gear, which is not great.   It might be that many expect the dour earnings performance to recover substantially, which has kept the P/E from collapsing.  You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.     View our latest analysis for Shanghai Electric Group SEHK:2727 Price to Earnings Ratio vs Industry February 10th 2026 Keen to find out how analysts think Shanghai Electric Group's future stacks up against the industry? In that case, our free report is a great place to start. Advertisement What Are Growth Metrics Telling Us About The High P/E?   Shanghai Electric Group's P/E ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the market.   Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 13%.   This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total.  Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.     Looking ahead now, EPS is anticipated to climb by 29% during the coming year according to the dual analysts following the company.  With the market only predicted to deliver 20%, the company is positioned for a stronger earnings result.  With this information, we can see why Shanghai Electric Group is trading at such a high P/E compared to the market.  Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.    The Final Word  Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.  As we suspected, our examination of Shanghai Electric Group's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E.  At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio.  It's hard to see the share price falling strongly in the near future under these circumstances.      A lot of potential risks can sit within a company's balance sheet.  Take a look at our free balance sheet analysis for Shanghai Electric Group with six simple checks on some of these key factors.   It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E). New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2610699733","isCrawlerRequest":true}