Despite a short-term dip in returns, Sinotruk (Hong Kong)'s rising revenue and capital employed are promising. The stock's 37% gain over five years suggests it may still be a good investment if other fundamentals are sound.

Market optimism for Sinotruk (Hong Kong) Limited is on the rise, as seen in the share price outpacing EPS growth. The recent TSR improvement could be a positive sign of business progress.

Despite a 26% drop in EPS over the last three years, investors seem to believe that the potential for a deterioration in earnings isn't significant enough to justify a lower P/E ratio. Therefore, it's unlikely to see the share price falling strongly in the near future.

Despite the drop in ROCE, the increase in revenue and capital employed could be seen as a positive sign for Sinotruk's growth. The stock price increase could be indicative of investor optimism for Sinotruk, given the current growth trends.

1.Tourist arrivals to Hong Kong jumped 31% to 3.6 million in July compared with June, which is the highest since the start of the pandemic and the first time that arrivals exceeded 3 million this year.
This is still a far cry from the 4.7 million average monthly arrivals HongKong enjoyed in 2019 but the trend is positive in favor of reaching full recovery by next year. In fact, tourist arrivals from countries like the Philippines an...