Here Are 3 Billion-Dollar Companies With High Revenue And Profit Growth

Growth investors seek companies that can grow at above average rates. But the tricky thing is the future is hard to predict.

One way growth investors can start their search is to look at companies that have grown their revenues and profits at high rates in the past.

With this in mind, here are three companies I’ve picked out at random from a list of companies with billion-dollar market capitalisations and five-year historical annual growth rates of over 15% for both revenue and profit: Oxley Holdings Ltd (SGX: 5UX), Yoma Strategic Holdings Ltd (SGX: Z59), and SIIC Environment Holdings Ltd (SGX: BHK).

Source: S&P Global Market Intelligence

As the table above shows, the trio have grown their businesses really fast, with their top-line compounding by at least 30% in their last five fiscal years and their bottom-line climbing by at least 34.5%.

Oxley Holdings is a regional property developer and hospitality group with a presence in a number of countries such as Singapore, Malaysia, Cambodia, China, and the UK.

The company’s development portfolio includes residential, commercial, and industrial properties. Meanwhile, it has investment properties that are in different sectors, such as industrial, hospitality, and commercial. In Singapore, Oxley has interests in hotels (Novotel Singapore and IBIS Singapore) and an industrial property (Space@Tampines).

Some of you may recognise Oxley as one of the few companies in Singapore’s stock market that have offered retail bonds to retail investors.

Yoma Strategic is a company that is involved in a wide array of businesses including real estate development, agriculture, construction, tourism, automobiles, and even retail. Its main geographic market is Myanmar. It has been a big winner in Singapore’s stock market with its shares delivering a total return of over 1,100% in the five years ended 15 August 2016.

One major development for Yoma Strategic over the past few years has been the win for the franchise rights to run Kentucky Fried Chicken outlets in Myanmar from Yum! Brands.

The third company in the list is SIIC Environment, a China-based company that is engaged in water treatment, solid waste treatment, and other environment-related businesses. In the first-half of 2016, SIIC Environment’s profit grew by 26% compared to a year ago, driven by a 42% increase in revenue.

Though the trio of Oxley, Yoma Strategic, and SIIC Environment have shown tremendous growth in their past five fiscal years, there is no guarantee that they can sustain such growth in the future.

Earlier, I mentioned that growth investors can start their search for investment opportunities by looking at a company’s historical growth. But, it’s important to note that it’s just a starting point – from there, investors should conduct further study on the companies, on areas such as the quality of their management and market opportunity.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.