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Companies that have significant growth prospects for profitability and returns can add tangible upside to your portfolio. CPMC Holdings and Minth Group 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.
CPMC Holdings Limited (SEHK:906)
CPMC Holdings Limited, an investment holding company, manufactures and sells packaging products for various consumer goods in the People’s Republic of China. Established in 2009, and currently lead by Ye Zhang, the company currently employs 6,488 people and with the stock’s market cap sitting at HKD HK$5.66B, it comes under the mid-cap group.
906’s forecasted bottom line growth is an optimistic 23.48%, driven by the underlying double-digit sales growth of 31.25% over the next few 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. We see this bottom-line expansion directly benefiting shareholders, with expected positive return on equity of 10.76%. 906’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in 906? Other fundamental factors you should also consider can be found here.
Minth Group Limited (SEHK:425)
Minth Group Limited, an investment holding company, designs, develops, manufactures, processes, and sells automobile body parts and molds of passenger cars in the People’s Republic of China and internationally. Established in 2005, and currently run by Jong Chin, the company size now stands at 16,360 people and has a market cap of HKD HK$43.94B, putting it in the large-cap category.
425’s projected future profit growth is a robust 17.53%, with an underlying 40.93% 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. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 20.36%. 425’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering 425 as a potential investment? Other fundamental factors you should also consider can be found here.