Best Growth Stock in March

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Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. China Shengmu Organic Milk and Genscript Biotech are examples of many potential outperformers that analysts are bullish on. 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.

China Shengmu Organic Milk Limited (SEHK:1432)

China Shengmu Organic Milk Limited, an investment holding company, produces and distributes raw milk and dairy products in the People’s Republic of China. Formed in 2009, and run by CEO Genhuo Shao, the company employs 3,609 people and has a market cap of HKD HK$7.18B, putting it in the mid-cap category.

1432’s forecasted bottom line growth is an optimistic 46.08%, driven by the underlying double-digit sales growth of 15.94% 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 positive return on equity of 8.47%. 1432’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 1432? Check out its fundamental factors here.

SEHK:1432 Future Profit Mar 25th 18
SEHK:1432 Future Profit Mar 25th 18

Genscript Biotech Corporation (SEHK:1548)

Genscript Biotech Corporation, an investment holding company, engages in the manufacture and sale of life sciences research products and services. Formed in 2002, and currently headed by CEO Zhang Fangliang, the company now has 1,600 employees and with the company’s market capitalisation at HKD HK$44.96B, we can put it in the large-cap stocks category.

1548’s forecasted bottom line growth is an optimistic 25.01%, driven by the underlying 54.87% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 11.31%. 1548’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering 1548 as a potential investment? Take a look at its other fundamentals here.