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Most investors find it challenging to find companies with prospective double-digit growth rates that are also financially robust. These hidden gems also add meaningful upside to a portfolio, should the companies meet expectations. 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 YuHua Education Corporation Limited (SEHK:6169)
China YuHua Education Corporation Limited provides non-vocational education services in the People’s Republic of China. Started in 2001, and currently run by Hua Li, the company employs 4,086 people and with the stock’s market cap sitting at HKD HK$13.48B, it comes under the large-cap group.
6169’s forecasted bottom line growth is an optimistic 24.52%, driven by the underlying 56.23% 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 18.41%. 6169’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about 6169? Check out its fundamental factors here.
Tianneng Power International Limited (SEHK:819)
Tianneng Power International Limited, an investment holding company, develops, produces, and sells motive, wind, and solar power storage batteries for the electric vehicle market in the People’s Republic of China. Formed in 1986, and now led by CEO Tianren Zhang, the company size now stands at 18,447 people and has a market cap of HKD HK$8.11B, putting it in the mid-cap stocks category.
819’s projected future profit growth is a robust 20.06%, with an underlying 27.58% growth from its revenues expected over the upcoming years. It appears that 819’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 23.54%. 819 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Other fundamental factors you should also consider can be found here.
Chinasoft International Limited (SEHK:354)
Chinasoft International Limited develops and provides information technology (IT) solutions, IT outsourcing and emerging, and training services. Established in 2000, and currently lead by Yuhong Chen, the company currently employs 50,356 people and with the company’s market cap sitting at HKD HK$11.77B, it falls under the large-cap category.