It’s been a tough year so far as the twin worries of inflation and high interest rates continue to dog the market.
However, there is a silver lining as several businesses still have the potential to perform well this year.
Growth investors should sit up as these stocks have sufficient catalysts in place to report higher revenue and earnings.
In tandem with this better performance, their share prices should also rise in response.
We highlight three stocks that have explosive growth potential that could strongly boost the value of your investment portfolio.
What’s more, the trio also pays out dividends and if they do report stronger financial numbers, this dividend could also increase along with their profits.
iFAST Corporation Limited (SGX: AIY)
iFAST is a financial technology (fintech) company that hosts a platform for the buying and selling of unit trusts, equities, and bonds.
The group’s results hit a rough patch in 2022 because of strategic investments made, expenses incurred for its Hong Kong ePension division, and an impairment loss on the exit of its Indian onshore business.
Net revenue inched up 3.8% year on year to S$118.2 million for 2022 but operating profit plunged 70.3% year on year to S$10.9 million.
Net profit fell sharply by 79% year on year to S$6.4 million.
Despite the poor results, iFAST is confident of achieving high growth in revenue and profitability from this year till 2025 as its ePension division starts to contribute materially.
Revenue and profitability are expected to hit new highs for the group this year.
iFAST has kept its total 2022 dividend constant at S$0.048 even though earnings per share plunged 64.2% year on year to S$0.0397.
Over in the UK, its new digital bank is actively onboarding new originating counterparties in Middle Eastern countries and opening new payment corridors.
These moves should help to boost revenue for the banking division through 2023
Raffles Medical Group Ltd (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare player that offers a comprehensive range of services such as health screening, specialist care, and dental and traditional Chinese medicine.
Its network comprises three hospitals and more than 100 multi-disciplinary clinics and the group employs more than 2,800 staff.
RMG reported a sterling set of results for 2022, with net profit surging 70.5% year on year to S$143.5 million on the back of a 5.9% year on year rise in revenue to S$766.5 million.
The group’s free cash flow also climbed 59.3% year on year from S$107.3 million to S$170.9 million.
A final dividend of S$0.038 was declared, representing a 35.7% year on year jump from the prior year’s S$0.028.
RMG’s business in Singapore continues to see more local and foreign patients returning for treatment as borders reopen.
China’s COVID-19 containment measures have also been relaxed, allowing more locals and expatriates to seek treatment at RMG’s Chongqing and Shanghai hospitals.
There’s more good news – the group received its operating licence to set up an in-vitro fertilisation and assisted reproductive therapy centre in Le Cheng, Hainan, in China.
Slated to open in the second quarter of this year, the facility will complement RMG’s China hospitals and serve an estimated 40 million women who may require reproductive fertility services.
Sembcorp Industries Ltd (SGX: U96)
Sembcorp Industries, or SCI, is a utility and urban solutions group with a balanced energy portfolio of 16.7 GW and a project portfolio spanning 12,000 hectares across Asia.
The group reported a sparkling set of earnings for 2022 with its core net profit jumping 87% year on year to S$883 million.
SCI paid out a total dividend of S$0.12 for 2022, more than double the S$0.05 that it doled out in 2021.
There could be more in store for the utility group.
Its gross renewables capacity has touched 9.8 GW, just shy of its 2025 target of 10 GW.
Business development efforts continue to yield results for SCI.
In late February, the blue-chip utility group secured a long-term power purchase agreement (PPA) with Micron (NASDAQ: MU) to supply the latter with up to 450 MW of power.
The 18-year agreement will add to earnings for 2023.
SCI was also awarded its very first greenfield renewables project in the Middle East, helping to build, own and operate a 500 MW solar plant in Oman that will be backed by a 20-year PPA.
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Disclosure: Royston Yang owns shares of iFAST and Raffles Medical Group.
