Stocks that are expected to significantly grow their profitability in the future can add meaningful upside to your portfolio. BBI Life Sciences and YiChang HEC ChangJiang Pharmaceutical are examples of many high-growth stocks that the market believe will be upcoming outperformers. 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.
BBI Life Sciences Corporation (SEHK:1035)
BBI Life Sciences Corporation, together with its subsidiaries, develops, manufactures, and sells various life sciences products used in scientific research in the People’s Republic of China, North America, South America, Europe, Africa, and internationally. Started in 2013, and now run by Luojia Wang, the company currently employs 1,208 people and with the company’s market capitalisation at HKD HK$2.22B, we can put it in the mid-cap category.
1035’s forecasted bottom line growth is an optimistic 21.54%, driven by the underlying double-digit sales growth of 48.58% over the next few years. It appears that 1035’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 positive return on equity of 11.90%. 1035’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. Want to know more about 1035? Check out its fundamental factors here.
YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (SEHK:1558)
YiChang HEC ChangJiang Pharmaceutical Co., Ltd., a pharmaceutical manufacturing company, engages in the development, manufacture, and sale of pharmaceutical products in the therapeutic areas of anti-virus, endocrine, metabolic, cardiovascular, and antineoplastic diseases in the People’s Republic of China. Founded in 2001, and currently lead by Juncai Jiang, the company size now stands at 1,779 people and with the market cap of HKD HK$7.00B, it falls under the mid-cap group.
1558 is expected to deliver a buoyant earnings growth over the next couple of years of 15.97%, bolstered by an equally impressive revenue growth of 58.07%. It appears that 1558’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 positive return on equity of 19.45%. 1558 ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in 1558? I recommend researching its fundamentals here.