CIMC Enric Holdings Limited's (HKG:3899) 30% Share Price Surge Not Quite Adding Up

The CIMC Enric Holdings Limited (HKG:3899) share price has done very well over the last month, posting an excellent gain of 30%. Looking back a bit further, it's encouraging to see the stock is up 53% in the last year. Following the firm bounce in price, given around half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") below 12x, you may consider CIMC Enric Holdings as a stock to potentially avoid with its 16.5x 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 as high as it is. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. CIMC Enric Holdings certainly has been doing a good job lately as it's been growing earnings more than most other companies. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason. See our latest analysis for CIMC Enric Holdings SEHK:3899 Price to Earnings Ratio vs Industry January 15th 2026 Want the full picture on analyst estimates for the company? Then our free report on CIMC Enric Holdings will help you uncover what's on the horizon. Is There Enough Growth For CIMC Enric Holdings? The only time you'd be truly comfortable seeing a P/E as high as CIMC Enric Holdings' is when the company's growth is on track to outshine 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. So we can start by confirming that the company has actually done a good job of growing earnings over that time. Looking ahead now, EPS is anticipated to climb by 14% per annum during the coming three years according to the twelve analysts following the company. With the market predicted to deliver 14% growth per year, the company is positioned for a comparable earnings result. In light of this, it's curious that CIMC Enric Holdings' P/E sits above the majority of other companies. It seems most investors are ignoring the fairly average growth expectations and are willing to pay up for exposure to the stock. Although, additional gains will be difficult to achieve as this level of earnings growth is likely to weigh down the share price eventually. The Bottom Line On CIMC Enric Holdings' P/E The large bounce in CIMC Enric Holdings' shares has lifted the company's P/E to a fairly high level. We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations. We've established that CIMC Enric Holdings currently trades on a higher than expected P/E since its forecast growth is only in line with the wider market. When we see an average earnings outlook with market-like growth, we suspect the share price is at risk of declining, sending the high P/E lower. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium. 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.