Investing Idea: Discover Southeast Asia's Fastest Growing Businesses Over the Next Three Years

Dear Investors,

In this letter and post, I present a profitable and actionable investing idea.

Earnings and revenue growth are the fundamental drivers of a business’s value. Businesses that focus on increasing their earnings and revenue over the long term will ultimately reward their investors with higher share prices.

The Southeast Asian businesses below are forecast to significantly grow their earnings and revenue by at least 20% per year over the next three years, faster than their respective countries’ savings rates, faster than their respective industries, and faster than their respective markets. They will also have higher returns on equity. As a result, their returns to investors, including dividends, are expected to be at least 20% per year as well.

Malaysia

SFP Tech Holdings, an investment holding company, provides engineering supporting services in Malaysia and internationally.

The business is forecast to grow its earnings and revenue by 25.3% and 21.2% per year, respectively, over the next three years. Earnings per share is expected to grow by 24.8% per year. Return on equity is forecast to be 21.9% in three years (up from 18.9% in March 2024).

SFP Tech Holdings vs. Malaysia’s Machinery Industry and Market Growth Forecasts

SFP Tech Holding’s expected return to investors (earnings growth rate + dividend yield in three years) is 26.0% per year over the next three years.

Thailand

Moshi Moshi Retail engages in the retail and wholesale of lifestyle products in Thailand.

The business is forecast to grow its earnings and revenue by 23.8% and 21.1% per year, respectively, over the next three years. Earnings per share is expected to grow by 23.7% per year. Return on equity is forecast to be 32.9% in three years (up from 20.7% in March 2024).

Moshi Moshi Retail vs. Thailand’s Specialty Retail Industry and Market Growth Forecasts

Moshi Moshi Retail’s expected return to investors (earnings growth rate + dividend yield in three years) is 26.6% per year over the next three years.

Vietnam

Phuoc Hoa Rubber plants, processes, and trades in rubber and rubber wood in Vietnam.

The business is forecast to grow its earnings and revenue by 28.8% and 22.4% per year, respectively, over the next three years. Earnings per share is expected to grow by 26.8% per year. Return on equity is forecast to be 20.4% in three years (up from 13.0% in March 2024).

Phuoc Hoa Rubber vs. Vietnam’s Chemical Industry and Market Growth Forecasts

Phuoc Hoa Rubber’s expected return to investors (earnings growth rate + dividend yield in three years) is 35.4% per year over the next three years.

Singapore

Geo Energy Resources, an investment holding company in Singapore, engages in the mining, production, and trading of coal in China, Indonesia, South Korea, India, the Philippines, and Thailand.

The business is forecast to grow its earnings and revenue by 55.1% and 25.6% per year, respectively, over the next three years. Earnings per share is expected to grow by 54.9% per year. Return on equity is forecast to be 28.5% in three years (up from 11.0% in March 2024).

Geo Energy Resources vs. Singapore’s Oil and Gas Industry and Market Growth Forecasts

Geo Energy Resources’ expected return to investors (earnings growth rate + dividend yield in three years) is 93.0% per year over the next three years.

Philippines

DigiPlus Interactive, through its subsidiaries, manages and operates general amusement, recreation enterprises, hotels, and gaming facilities in the Philippines. The company was formerly known as Leisure & Resorts World.

The business is forecast to grow its earnings and revenue by 38.0% and 24.2% per year, respectively, over the next three years. Earnings per share is expected to grow by 36.3% per year. Return on equity is forecast to be 36.7% in three years (up from 28.1%).

DigiPlus Interactive vs. the Philippines’ Hospitality Industry and Market Growth Forecasts

DigiPlus Interactive’s expected return to investors (earnings growth rate + dividend yield in three years) is 41.7% per year over the next three years.

Indonesia

Digital Mediatama Maxima operates an integrated marketing platform in Indonesia.

The business is forecast to be profitable this year and to grow its earnings and revenue by 142.9% and 20.6% per year, respectively, over the next three years, while earnings per share is expected to grow by 142.9% per year.

Digital Mediatama Maxima vs. Indonesia’s Media Industry and Market Growth Forecasts

Digital Mediatama Maxima’s expected return to investors (earnings growth rate) is 142.9% per year over the next three years.

I hope you found the above investing idea insightful and useful.

If you’re interested in discovering more fast-growing businesses anywhere in the world, let me know.

I wish you profitable returns on your capital.

Eric, The International Investor

---

The best way to compound wealth while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund compounds maximum value over time with minimum risk, regardless of the global market environment.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.