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. 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.
Yestar Healthcare Holdings Company Limited (SEHK:2393)
Yestar Healthcare Holdings Company Limited, an investment holding company, engages in the manufacture, distribution, processing, and sale of medical imaging products; distribution of in vitro diagnostic products; and manufacture and sale of dental films in the People’s Republic of China. Started in 1971, and now led by CEO James Hartono, the company size now stands at 984 people and with the stock’s market cap sitting at HKD HK$6.61B, it comes under the mid-cap group.
2393’s forecasted bottom line growth is an optimistic double-digit 19.81%, driven by the underlying double-digit sales growth of 28.55% 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 return on equity coming in at a notable 42.07%. 2393’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? Check out its fundamental factors here.
Beijing Enterprises Clean Energy Group Limited (SEHK:1250)
Beijing Enterprises Clean Energy Group Limited engages in the investment, development, construction, operation, and management of photovoltaic power plants in the People’s Republic of China. Established in 2000, and now run by Weihua Huang, the company provides employment to 1,556 people and with the company’s market capitalisation at HKD HK$17.47B, we can put it in the large-cap stocks category.
1250 is expected to deliver a buoyant earnings growth over the next couple of years of 24.24%, bolstered by an equally impressive revenue growth of 59.57%. 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 19.50%. 1250 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 1250? I recommend researching its fundamentals here.