Companies such as Hung Fook Tong Group Holdings and TK Group (Holdings) have a significantly positive future outlook on the basis of their profitability and returns. Investors seeking to enhance their portfolio should consider these financially stable, high-growth stocks. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Hung Fook Tong Group Holdings Limited (SEHK:1446)
Hung Fook Tong Group Holdings Limited, an investment holding company, engages in the production, retail, wholesale, and distribution of herbal and non-herbal products in the People’s Republic of China and internationally. Started in 1986, and now led by CEO Wang Yung Kwan, the company size now stands at 1,428 people and with the stock’s market cap sitting at HKD HK$426.36M, it comes under the small-cap category.
1446 is expected to deliver an extremely high earnings growth over the next couple of years of 64.87%, driven by a positive double-digit revenue growth of 24.66% and cost-cutting initiatives. An affirming signal is when net income increase also comes with top-line growth. Even though some cost-reduction initiatives may have also pushed up margins, in the case of 1446, it does not appear extreme. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 9.24%. 1446’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. Thinking of investing in 1446? Check out its fundamental factors here.
TK Group (Holdings) Limited (SEHK:2283)
TK Group (Holdings) Limited, an investment holding company, engages in the manufacture, sale, subcontracting, fabrication, and modification of molds and plastic components in the People’s Republic of China, South East Asia, Hong Kong, Europe, the United States, Mexico, and internationally. Formed in 1983, and headed by CEO Kin Cheung Yung , the company employs 3,427 people and with the market cap of HKD HK$4.34B, it falls under the mid-cap category.
Driven by the positive double-digit sales growth of 34.28% over the next few years, 2283 is expected to deliver an excellent earnings growth of 19.87%. 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 38.65%. 2283’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Interested to learn more about 2283? Take a look at its other fundamentals here.