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Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. KSH Holdings and mm2 Asia are examples of many potential outperformers that analysts are bullish on. 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.
KSH Holdings Limited (SGX:ER0)
KSH Holdings Limited, an investment holding company, operates as a construction contractor for public and private sectors primarily in Singapore and the People’s Republic of China. KSH Holdings was started in 1979 and with the company’s market cap sitting at SGD SGD373.18M, it falls under the small-cap category.
Want to know more about ER0? Other fundamental factors you should also consider can be found here.
mm2 Asia Ltd. (SGX:1B0)
mm2 Asia Ltd., an investment holding company, produces, distributes, and sponsors films, television (TV), and online content in Singapore, Malaysia, Hong Kong, Taiwan, China, and internationally. Established in 2008, and currently headed by CEO Long Jong Chang, the company size now stands at 30 people and with the stock’s market cap sitting at SGD SGD546.52M, it comes under the small-cap category.
1B0’s projected future profit growth is a robust 22.50%, with an underlying 90.45% growth from its revenues expected over the upcoming 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 17.35%. 1B0 ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about 1B0? Check out its fundamental factors here.
Sarine Technologies Ltd. (SGX:U77)
Sarine Technologies Ltd. develops, manufactures, markets, and sells precision technology products for processing and trading diamonds and gemstones worldwide. Sarine Technologies was established in 1988 and with the company’s market capitalisation at SGD SGD404.04M, we can put it in the small-cap category.
U77 is expected to deliver an extremely high earnings growth over the next couple of years of 41.67%, driven by a positive double-digit revenue growth of 44.90% and cost-cutting initiatives. 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. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 32.99%. U77’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. Should you add U77 to your portfolio? Other fundamental factors you should also consider can be found here.