CIMC Enric Holdings Limited's (HKG:3899) Business Is Yet to Catch Up With Its Share Price

It's not a stretch to say that CIMC Enric Holdings Limited's (HKG:3899) price-to-earnings (or "P/E") ratio of 12.6x right now seems quite "middle-of-the-road" compared to the market in Hong Kong, where the median P/E ratio is around 12x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E. 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. CIMC Enric Holdings certainly has been doing a good job lately as it's been growing earnings more than most other companies. One possibility is that the P/E is moderate because investors think this strong earnings performance might be about to tail off. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favour. Check out our latest analysis for CIMC Enric Holdings SEHK:3899 Price to Earnings Ratio vs Industry December 1st 2025 If you'd like to see what analysts are forecasting going forward, you should check out our free report on CIMC Enric Holdings. How Is CIMC Enric Holdings' Growth Trending? CIMC Enric Holdings' P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market. Retrospectively, the last year delivered a decent 13% gain to the company's bottom line. The latest three year period has also seen a 23% 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 13% per year as estimated by the eleven analysts watching the company. Meanwhile, the rest of the market is forecast to expand by 15% per year, which is noticeably more attractive. In light of this, it's curious that CIMC Enric Holdings' P/E sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited growth expectations and are willing to pay up for exposure to the stock. These shareholders may be setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook. The Key Takeaway 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. Our examination of CIMC Enric Holdings' analyst forecasts revealed that its inferior earnings outlook isn't impacting its P/E as much as we would have predicted. Right now we are uncomfortable with the P/E as the predicted future earnings aren't likely to support a more positive sentiment for long. Unless these conditions improve, it's challenging to accept these prices as being reasonable. It is also worth noting that we have found 1 warning sign for CIMC Enric Holdings that you need to take into consideration. If these risks are making you reconsider your opinion on CIMC Enric Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there.