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Shenzhou International Group Holdings and CIMC Enric Holdings are a few noticeable companies with a strong future outlook. The market’s optimistic sentiment towards these stocks indicates a level of confidence in the future outlook of their businesses. Investment in growth companies can benefit your current holdings, whether it be in established tech giants or undiscovered micro-caps. Here, I’ve put together a few companies the market is particularly optimistic towards.
Shenzhou International Group Holdings Limited (SEHK:2313)
Shenzhou International Group Holdings Limited, an investment holding company, engages in manufacturing, processing, and selling knitwear products. Started in 2005, and now led by CEO Guanlin Huang, the company employs 81,580 people and has a market cap of HKD HK$120.41B, putting it in the large-cap group.
Extreme optimism for 2313, as market analysts projected an outstanding earnings growth rate of 17.48% for the stock, supported by a double-digit sales growth of 37.05%. 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 22.68%. 2313 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Interested to learn more about 2313? Other fundamental factors you should also consider can be found here.
CIMC Enric Holdings Limited (SEHK:3899)
CIMC Enric Holdings Limited, an investment holding company, designs, develops, manufactures, engineers, sells, and maintains transportation, storage, and processing equipment used in the energy, chemicals, and liquid food industries worldwide. Founded in 2004, and currently headed by CEO Xiaohu Yang, the company size now stands at 9,000 people and has a market cap of HKD HK$13.19B, putting it in the large-cap stocks category.
3899’s forecasted bottom line growth is an optimistic 37.67%, driven by the underlying double-digit sales growth of 37.78% over the next few years. It appears that 3899’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 11.91%. 3899’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. Considering 3899 as a potential investment? Have a browse through its key fundamentals here.