Analysts are bullish on these following companies: Kingsoft, CRCC High-Tech Equipment, Cogobuy Group. These companies are relatively strong financially, and have a great outlook in terms of profits and cash flow. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Kingsoft Corporation Limited (SEHK:3888)
Kingsoft Corporation Limited, an investment holding company, operates as a software and Internet services company in Mainland China, Hong Kong, Singapore, and internationally. Started in 1988, and headed by CEO Tao Zou, the company now has 5,228 employees and with the company’s market cap sitting at HKD HK$33.70B, it falls under the large-cap stocks category.
3888’s forecasted bottom line growth is an optimistic 34.23%, driven by the underlying 81.07% sales growth over the next few years. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 17.16%. 3888 ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in 3888? Check out its fundamental factors here.
CRCC High-Tech Equipment Corporation Limited (SEHK:1786)
CRCC High-Tech Equipment Corporation Limited researches, develops, manufactures, and sells large railway track maintenance machinery in Mainland China and internationally. Established in 1954, and currently headed by CEO Pujiang Tong, the company now has 1,967 employees and with the stock’s market cap sitting at HKD HK$2.45B, it comes under the mid-cap stocks category.
Driven by exceptional sales, which is expected to more than double over the next few years, 1786 is expected to deliver an excellent earnings growth of 68.82%. It appears that 1786’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 positive return on equity of 6.66%. 1786’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Check out its fundamental factors here.
Cogobuy Group (SEHK:400)
Cogobuy Group operates as an e-commerce company serving the electronics manufacturing industry in the People’s Republic of China and Hong Kong. Formed in 2000, and run by CEO Jingwei Kang, the company currently employs 798 people and with the stock’s market cap sitting at HKD HK$5.85B, it comes under the mid-cap category.
400 is expected to deliver a buoyant earnings growth over the next couple of years of 48.98%, bolstered by an equally impressive revenue growth. It appears that 400’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 13.40%. 400’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. Interested to learn more about 400? Other fundamental factors you should also consider can be found here.
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.