Best-In-Class Growth Stocks
Zhongsheng Group Holdings and Xin Point Holdings can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. 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.
Zhongsheng Group Holdings Limited (SEHK:881)
Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles. Established in 1998, and currently lead by Guoqiang Li, the company currently employs 25,577 people and with the stock’s market cap sitting at HKD HK$51.24B, it comes under the large-cap stocks category.
881’s forecasted bottom line growth is an optimistic double-digit 16.53%, driven by the underlying double-digit sales growth of 30.47% over the next few years. It appears that 881’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 high double-digit return on equity of 21.38%. 881’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. A potential addition to your portfolio? Check out its fundamental factors here.
Xin Point Holdings Limited (SEHK:1571)
Xin Point Holdings Limited manufactures, sells, and supplies automotive plastic electroplated components in the People’s Republic of China, North America, Europe, and internationally. Founded in 2002, and currently lead by Xiaoming Ma, the company currently employs 4,638 people and with the company’s market capitalisation at HKD HK$5.71B, we can put it in the mid-cap group.
An outstanding 18.61% earnings growth is forecasted for 1571, driven by an underlying sales growth of 47.14% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 26.70%. 1571’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 1571 to your portfolio? Take a look at its other fundamentals here.
AAC Technologies Holdings Inc. (SEHK:2018)
AAC Technologies Holdings Inc., an investment holding company, provides miniaturized technology components to the consumer electronics industry worldwide. Established in 1993, and headed by CEO Zhengmin Pan, the company employs 52,171 people and has a market cap of HKD HK$139.67B, putting it in the large-cap stocks category.
2018’s projected future profit growth is a robust 22.00%, with an underlying 57.92% growth from its revenues expected over the upcoming 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 33.44%. 2018’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. Considering 2018 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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
