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.
Sa Sa International Holdings Limited (SEHK:178)
Sa Sa International Holdings Limited, an investment holding company, engages in the retail and wholesale of cosmetic products. Started in 1978, and now run by Siu Ming Kwok, the company size now stands at 5,000 people and with the stock’s market cap sitting at HKD HK$9.28B, it comes under the mid-cap stocks category.
178’s projected future profit growth is a robust 25.05%, with an underlying 8.47% growth from its revenues expected over the upcoming years. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with top-line expansion. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 25.45%. 178’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about 178? Have a browse through its key fundamentals here.
Kingdee International Software Group Company Limited (SEHK:268)
Kingdee International Software Group Company Limited, an investment holding company, develops, manufactures, markets, and sells enterprise management software products. Founded in 1991, and now led by CEO Shao Chun Xu, the company currently employs 7,755 people and has a market cap of HKD HK$13.10B, putting it in the large-cap stocks category.
268’s forecasted bottom line growth is an optimistic 29.99%, driven by the underlying double-digit sales growth of 45.79% over the next few years. It appears that 268’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 8.67%. 268 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add 268 to your portfolio? Other fundamental factors you should also consider can be found here.
Sino Biopharmaceutical Limited (SEHK:1177)
Sino Biopharmaceutical Limited, researches, develops, manufactures, and markets Chinese medicines and chemical medicines in Hong Kong. Started in 2000, and now run by Ping Tse, the company provides employment to 18,065 people and with the company’s market cap sitting at HKD HK$110.15B, it falls under the large-cap category.