Beijing Xunzhong Communication Technology just faced a sentiment check. The stock has fallen 8.7% over the past week even though the latest half year delivered C¥326.25m in revenue and kept the telecom earnings story intact. The headline is profit quality, not raw profit.

Trailing earnings are 13% higher over the last 12 months. However, the P/E sits at about 63.7x against an industry closer to 17.7x. That valuation premium depends heavily on earnings that already carry a high non cash component, so the market looks less excited and more cautious on that gap today.

Love the strong reported earnings trend at Beijing Xunzhong Communication Technology but concerned that the high P/E is leaning on non cash profit? Check out the list of…