Individual investors like stocks with a high growth potential. These companies have a strong outlook that can bring a significant upside to your portfolio, regardless of market cyclicality. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
TK Group (Holdings) Limited (SEHK:2283)
TK Group (Holdings) Limited, an investment holding company, engages in the manufacture, sale, subcontracting, fabrication, and modification of molds and plastic components in the People’s Republic of China, South East Asia, Hong Kong, Europe, the United States, Mexico, and internationally. Started in 1983, and now led by CEO Kin Cheung Yung , the company provides employment to 3,726 people and with the market cap of HKD HK$5.43B, it falls under the mid-cap category.
2283 is expected to deliver an extremely high earnings growth over the next couple of years of 19.50%, driven by a positive double-digit revenue growth of 39.31% and cost-cutting initiatives. It appears that 2283’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 35.72%. 2283’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in 2283? I recommend researching its fundamentals here.
Tsit Wing International Holdings Limited (SEHK:2119)
Tsit Wing International Holdings Limited, an investment holding company, provides beverages and food products in the People’s Republic of China and internationally. Founded in 1932, and now run by Tat Wong, the company now has 506 employees and has a market cap of HKD HK$1.23B, putting it in the small-cap category.
2119 is expected to deliver a buoyant earnings growth over the next couple of years of 27.24%, driven by a positive double-digit revenue growth of 24.24% and cost-cutting initiatives. It appears that 2119’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 19.40%. 2119’s bullish prospects on both the top and bottom lines make it an interesting stock to invest more time to understand how it can add value to your portfolio. Should you add 2119 to your portfolio? Have a browse through its key fundamentals here.
Union Medical Healthcare Limited (SEHK:2138)
Union Medical Healthcare Limited provides aesthetic medical services in Hong Kong. Started in 2005, and run by CEO Chi Tang, the company now has 1,329 employees and has a market cap of HKD HK$5.14B, putting it in the mid-cap category.
2138’s forecasted bottom line growth is an optimistic double-digit 16.55%, driven by the underlying double-digit sales growth of 47.67% over the next few years. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 29.21%. 2138 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Considering 2138 as a potential investment? I recommend researching its fundamentals here.
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.