We need to differentiate between valuations linked to earnings and P/E premium given by the market due to external factors. I think now that the latter has disappeared we’ll have to see how much valuations can be sustained by earnings which I feel will now moderate due to increasing competition (acknowledged by management in the last concall) and uncertainty over demand trajectory (both overseas and domestic).
I still maintain my previous position that all future prospects are priced in already into the counter and earning growth has peaked (which explains low p/e).
That said stock may still give decent return but I’m not comfortable with risk and reward.