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High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. 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.
Geely Automobile Holdings Limited (SEHK:175)
Geely Automobile Holdings Limited, an investment holding company, operates as an automobile manufacturer primarily in the People’s Republic of China. The company currently employs 34100 people and with the company’s market capitalisation at HKD HK$222.98B, we can put it in the large-cap category.
175’s forecasted bottom line growth is an optimistic double-digit 25.76%, driven by the underlying 71.02% sales growth over the next few years. It appears that 175’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 30.39%. 175’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. Could this stock be your next pick? I recommend researching its fundamentals here.
Fairwood Holdings Limited (SEHK:52)
Fairwood Holdings Limited, an investment holding company, engages in the operation of fast food restaurants. The company employs 5600 people and with the stock’s market cap sitting at HKD HK$4.13B, it comes under the mid-cap stocks category.
Driven by the positive double-digit sales growth of 38.70% over the next few years, 52 is expected to deliver an excellent earnings growth of 21.27%. 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 49.70%. 52’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. Could this stock be your next pick? Take a look at its other fundamentals here.
SPT Energy Group Inc. (SEHK:1251)
SPT Energy Group Inc., an investment holding company, provides integrated oilfield services primarily in the People’s Republic of China, the Republic of Kazakhstan, Singapore, Canada, and Indonesia. Formed in 1998, and currently headed by CEO Guoqiang Wang, the company now has 3,440 employees and with the company’s market capitalisation at HKD HK$1.21B, we can put it in the small-cap group.