SUNeVision Holdings Ltd.'s (HKG:1686) P/E Is On The Mark

When close to half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") below 12x, you may consider SUNeVision Holdings Ltd. (HKG:1686) as a stock to avoid entirely with its 19.2x 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. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. With earnings growth that's superior to most other companies of late, SUNeVision Holdings has been doing relatively well. The P/E is probably high because investors think this strong earnings performance will continue. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason. Check out our latest analysis for SUNeVision Holdings SEHK:1686 Price to Earnings Ratio vs Industry December 29th 2025 Want the full picture on analyst estimates for the company? Then our free report on SUNeVision Holdings will help you uncover what's on the horizon. How Is SUNeVision Holdings' Growth Trending? SUNeVision Holdings' 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. If we review the last year of earnings growth, the company posted a worthy increase of 7.8%. The latest three year period has also seen a 15% overall rise in EPS, aided somewhat by its short-term performance. Therefore, it's fair to say the earnings growth recently has been respectable for the company. Turning to the outlook, the next three years should generate growth of 19% each year as estimated by the seven analysts watching the company. That's shaping up to be materially higher than the 14% per annum growth forecast for the broader market. With this information, we can see why SUNeVision Holdings 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 Key Takeaway It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator. As we suspected, our examination of SUNeVision Holdings' 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. It's always necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with SUNeVision Holdings, and understanding should be part of your investment process. If these risks are making you reconsider your opinion on SUNeVision Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech