Shares of Chengdu Expressway Co., Ltd. (HKG: 01785) plummeted over 5% on Wednesday, underperforming the broader market. The sharp decline in the stock price can be attributed to concerns over the company's earnings outlook lagging the overall market growth expectations.

According to a recent analysis, while Chengdu Expressway's earnings grew at a solid pace of 14% last year, its medium-term earnings growth has been lackluster, with no growth over the past three years. This mixed performance has raised doubts about the company's ability to sustain strong earnings momentum.

Furthermore, the analysis suggests that the company's earnings growth is expected to trail the overall market's projected growth of 22% in the next year. This outlook has put downward pressure on Chengdu Expressway's valuation, as reflected in its relatively low price-to-earnings (P/E) ratio of 6.1x, which is significantly lower than the market average.