Flavor Of The Month: Metallurgical of China And More
Want to add more growth to your portfolio but not sure where to look? Companies such as Metallurgical of China and Haichang Ocean Park Holdings are deemed high-growth by the market, with a positive outlook in all areas – returns, profitability and cash flows. 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.
Metallurgical Corporation of China Ltd. (SEHK:1618)
Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacturing, and resources development businesses in China and internationally. Established in 2008, and now run by Mengxing Zhang, the company size now stands at 97,684 people and with the market cap of HKD HK$99.56B, it falls under the large-cap group.
1618’s projected future profit growth is a robust 20.44%, with an underlying 37.21% growth from its revenues expected over the upcoming 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 positive return on equity of 10.69%. 1618’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Want to know more about 1618? Other fundamental factors you should also consider can be found here.
Haichang Ocean Park Holdings Ltd. (SEHK:2255)
Haichang Ocean Park Holdings Ltd., together with its subsidiaries, develops, constructs, and operates theme parks and ancillary commercial properties in the People’s Republic of China. Founded in 2001, and currently run by Xuguang Wang, the company employs 2,775 people and with the company’s market capitalisation at HKD HK$7.88B, we can put it in the mid-cap group.
2255 is expected to deliver a buoyant earnings growth over the next couple of years of 29.19%, bolstered by an equally impressive revenue growth of 58.66%. 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 positive return on equity of 7.02%. 2255’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add 2255 to your portfolio? Other fundamental factors you should also consider can be found here.
Tang Palace (China) Holdings Limited (SEHK:1181)
Tang Palace (China) Holdings Limited, an investment holding company, engages in the restaurant and food production business in the People’s Republic of China. Founded in 1997, and now led by CEO Peihe Weng, the company provides employment to 4,500 people and with the company’s market capitalisation at HKD HK$1.79B, we can put it in the small-cap group.
1181 is expected to deliver an extremely high earnings growth over the next couple of years of 20.64%, driven by a positive double-digit revenue growth of 44.22% and cost-cutting initiatives. 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 40.38%. 1181 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Could this stock be your next pick? Other fundamental factors you should also consider can be found here.
For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
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.
