Yixin Group Limited (HKG: 2858) shares have had an impressive past couple of months, gaining +16.2% YTD after a shaky period beforehand. This outperforms the HSI index which at the moment YTD has only gained +2.5%.
The stock is currently under consolidation mode for about a month now going directionless.
With the recent rebound in share price, there still wouldn’t be many who think that Yixin Group’s Price to Earnings ratio of 7.5x is worth a mention when the median average Price to Earnings for the sector industry is about 18.5x.
One possibility for the relatively moderate P/E is because investors might not be confident of the company’s earnings going forward. The stock market is usually forward looking so investors can only say with confidence once they see a clearer growth direction going forward.
Yixin Group Limited is a prominent player in China’s online automobile finance market. Founded in 2014 and headquartered in Shanghai, Yixin...