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Kingsoft and CRCC High-Tech Equipment 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. Whether it be a well-known tech stock or a risky small-cap, I believe diversification towards growth can add value to your current holdings. Below I’ve compiled a list of stocks with a bright future ahead.
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. Founded in 1988, and currently headed by CEO Tao Zou, the company now has 5,228 employees and with the stock’s market cap sitting at HKD HK$33.70B, it comes under the large-cap category.
3888’s projected future profit growth is a robust 34.23%, with an underlying 81.07% 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a 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. Could this stock be your next pick? I recommend researching its fundamentals 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. Founded in 1954, and run by CEO Pujiang Tong, the company currently employs 1,967 people and has a market cap of HKD HK$2.45B, putting it in the mid-cap category.
An outstanding 68.82% earnings growth is forecasted for 1786, driven by strong underlying sales growth 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 6.66%. 1786’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in 1786? Have a browse through its key fundamentals here.