In This Article:
CRCC High-Tech Equipment and Kingsoft can add profound upside to your portfolio. This is because the optimistic growth outlook for their profitability and returns make their high-growth potential appealing relative to their peers. If your holdings could benefit from diversification towards growth stocks, whether it be in reputable tech stocks or green small-caps, take a look at my list of stocks with a bright future ahead.
CRCC High-Tech Equipment Corporation Limited (SEHK:1786)
CRCC High-Tech Equipment Corporation Limited researches, develops, manufactures, and sells large railway track maintenance machinery in Mainland China and internationally. Started in 1954, and now run by Pujiang Tong, the company now has 1,967 employees and with the company’s market cap sitting at HKD HK$2.96B, it falls under the mid-cap group.
1786 is expected to deliver an extremely high earnings growth over the next couple of years of 51.90%, bolstered by an equally impressive revenue growth of 97.71%. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 8.21%. 1786’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? I recommend researching its fundamentals here.
Kingsoft Corporation Limited (SEHK:3888)
Kingsoft Corporation Limited, an investment holding company, operates as a software and Internet service company in Mainland China, Hong Kong, and internationally. Started in 1988, and now run by Tao Zou, the company size now stands at 5,228 people and with the stock’s market cap sitting at HKD HK$32.94B, it comes under the large-cap category.
3888’s forecasted bottom line growth is an optimistic 33.25%, driven by the underlying 81.30% sales growth over the next few years. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 15.29%. 3888’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. Interested to learn more about 3888? I recommend researching its fundamentals here.