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Companies such as YiChang HEC ChangJiang Pharmaceutical and Essex Bio-Technology have a significantly positive future outlook on the basis of their profitability and returns. Investors seeking to enhance their portfolio should consider these financially stable, high-growth stocks. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (SEHK:1558)
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Formed in 2001, and now run by Juncai Jiang, the company provides employment to 1,997 people and has a market cap of HKD HK$19.64B, putting it in the large-cap category.
Extreme optimism for 1558, as market analysts projected an outstanding earnings growth rate of 15.78% for the stock, supported by a double-digit sales growth of 40.74%. 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 22.33%. 1558 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about 1558? Other fundamental factors you should also consider can be found here.
Essex Bio-Technology Limited (SEHK:1061)
Essex Bio-Technology Limited, an investment holding company, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the People’s Republic of China. Established in 2000, and run by CEO Haizhou Fang, the company now has 1,024 employees and with the stock’s market cap sitting at HKD HK$4.47B, it comes under the mid-cap group.
1061’s projected future profit growth is a robust 17.94%, with an underlying 43.80% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 22.70%. 1061’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add 1061 to your portfolio? I recommend researching its fundamentals here.