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Hock Lian Seng Holdings and Golden Energy and Resources 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. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Hock Lian Seng Holdings Limited (SGX:J2T)
Hock Lian Seng Holdings Limited, an investment holding company, primarily provides civil engineering services to public and private sectors in Singapore. Hock Lian Seng Holdings was founded in 1969 and with the company’s market cap sitting at SGD SGD233.97M, it falls under the small-cap stocks category.
J2T’s projected future profit growth is a robust 15.76%, with an underlying 95.85% growth from its revenues expected over the upcoming 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 12.00%. J2T ticks the boxes for high-growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Thinking of investing in J2T? Have a browse through its key fundamentals here.
Golden Energy and Resources Limited (SGX:AUE)
Golden Energy and Resources Limited, an investment holding company, engages in the exploration, mining, and marketing of thermal coal in Indonesia. Founded in 1997, and currently headed by CEO Fuganto Widjaja, the company provides employment to 380 people and with the market cap of SGD SGD858.88M, it falls under the small-cap group.
AUE is expected to deliver a buoyant earnings growth over the next couple of years of 28.71%, driven by a positive double-digit revenue growth of 16.52% and cost-cutting initiatives. 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 19.95%. AUE’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in AUE? Other fundamental factors you should also consider can be found here.