SYoung Group Co., Ltd. (SZSE:300740) shares have had a really impressive month, gaining 43% after a shaky period beforehand. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 15% over that time.

In spite of the firm bounce in price, SYoung Group’s price-to-earnings (or “P/E”) ratio of 22.1x might still make it look like a buy right now compared to the market in China, where around half of the companies have P/E ratios above 34x and even P/E’s above 64x are quite common. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.

Recent times have been pleasing for SYoung Group as its earnings have risen in…