Hainan Jinpan Smart Technology's underlying earnings power may be lower than its statutory profit, lacking free cash flow support. The company's CN¥714m cash burn this year could indicate high risk, despite impressive EPS growth over the past three years.

Despite Hainan Jinpan Smart Technology's high P/E ratio, shareholders hold on to shares due to its promising earnings outlook and market outperformance expectations. The high P/E ratio mirrors investor sentiment and future expectations.

The company's flat ROCE trend and high capital deployment raise doubts about its multi-bagger potential. High current liabilities add risk elements. These trends may be noted by investors, as seen in modest stock returns over the past year.

Despite rising capital, Hainan Jinpan Smart Technology's low ROCE over five years suggests poor return on investments. A high current liabilities to total assets ratio indicates over-reliance on suppliers or short-term creditors, mooting risks.