Insufficient Growth At Heung-A Shipping Co.,Ltd. (KRX:003280) Hampers Share Price
When close to half the companies in Korea have price-to-earnings ratios (or “P/E’s”) above 15x, you may consider Heung-A Shipping Co.,Ltd. (KRX:003280) as an attractive investment with its 12x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
The earnings growth achieved at Heung-A ShippingLtd over the last year would be more than acceptable for most companies. It might be that many expect the respectable earnings performance to degrade substantially, which has repressed the P/E. If that doesn’t eventuate, then existing shareholders have…
