They're forecasting a 400% rise in profit this financial year....

They're forecasting a 400% rise in profit this financial year. That's probably conservative given the article below from the SMH finance blog today. If they're making a 4 fold increase in profit why hasn't the share price increased 4 fold? When the full year results were announced last year the share price was 1.3c. Surely the share price should be at least 5.2c? Given this company's growth rate you'd expect there should be even more than a 4 fold increase in share price.

Hong Kong's economic woes

The Hong Kong economy is in trouble with private sector activity levels plunging by the most on record in February. The IHS Markit Hong Kong Purchasing Managers Index (PMI) tumbled to 33.1 during the month, hitting the lowest level since the survey was first established over 21 years ago.“The outbreak of the coronavirus had a severe impact on Hong Kong's private sector economy during February,” IHS Markit said.“Both output and new orders plunged at survey-record rates that, in turn, led firms to cut back on hiring amid a severe development of excess capacity, as reflected by a sharp fall in backlogs of work. Supply chains were affected by the Covid-19 situation, leading to delivery delays and higher costs for purchased inputs.”Given that backdrop, sentiment towards the year ahead collapsed, also hitting levels never seen before on fears the coronavirus outbreak will persist in the months ahead.Bernard Aw, Principal Economist at IHS Markit, said the February result points to likelihood of deeper and longer recession for the special administrative region.“With the Hong Kong SAR economy shrinking 1.9 per cent during 2019, the average PMI so far for the first quarter of 2020 points to a deepening recession, raising the urgency for policy support,” Mr Aw said.PMIs measure the change in activity levels from one month to the next. Any figure below 50 signals activity levels fell at a majority of firms. The distance from 50 indicates how widespread the decline occurred. Last week Hong Kong's government announced all adults will receive $HK10,000 ($AUD1,960) to spend in a bid to boost economic activity.