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High-growth stocks that are financially stable are attractive for many reasons. They provide a strong upside to your portfolio, with less likelihood of downside risks compared to less financially robust companies. 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.
FIH Mobile Limited (SEHK:2038)
FIH Mobile Limited, an investment holding company, provides integrated manufacturing services for the handset industry worldwide. Formed in 2000, and now run by Yu Yang Chih, the company employs 92,779 people and with the company’s market capitalisation at HKD HK$13.27B, we can put it in the large-cap stocks category.
Extreme optimism for 2038, as market analysts projected an outstanding earnings growth, which is expected to more than double, supported by a double-digit sales growth of 30.24%. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 2.85%. 2038’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Should you add 2038 to your portfolio? Other fundamental factors you should also consider can be found here.
China Medical System Holdings Limited (SEHK:867)
China Medical System Holdings Limited, an investment holding company, produces medicines; and markets, promotes, and sells drugs in the People’s Republic of China. Formed in 1995, and now run by Kong Lam, the company currently employs 3,600 people and with the company’s market capitalisation at HKD HK$47.56B, we can put it in the large-cap group.
Extreme optimism for 867, as market analysts projected an outstanding earnings growth rate of 16.22% for the stock, supported by a double-digit sales growth of 30.10%. It appears that 867’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 high double-digit return on equity of 24.01%. 867 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in 867? Other fundamental factors you should also consider can be found here.