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Robust, high-growth companies such as Goodbaby International Holdings are appealing to investors for many reasons. They bring about a strong upside to your portfolio, and less downside risk as opposed to financially challenged companies. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Goodbaby International Holdings Limited (SEHK:1086)
Goodbaby International Holdings Limited, an investment holding company, researches, designs, develops, manufactures, markets, and sells durable juvenile products in Europe, North America, Mainland China, and internationally. Founded in 1989, and currently run by Martin Pos, the company employs 15,516 people and with the stock’s market cap sitting at HKD HK$8.34B, it comes under the mid-cap category.
1086’s forecasted bottom line growth is an optimistic 36.31%, driven by the underlying 50.90% sales growth over the next few years. It appears that 1086’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 12.19%. 1086 ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Take a look at its other fundamentals here.
Summit Ascent Holdings Limited (SEHK:102)
Summit Ascent Holdings Limited, an investment holding company, engages in the operation of hotel and gaming business in the Integrated Entertainment Zone of the Primorye Region in Russian. Established in 1993, and now run by , the company currently employs 1,000 people and has a market cap of HKD HK$1.40B, putting it in the small-cap group.
Driven by the exceptional 57.36% sales growth over the next few years, 102 is expected to deliver an excellent earnings growth of 73.43%. 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 6.40%. 102’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 102? I recommend researching its fundamentals here.