It hasn't been the best of starts to the year for Australia's small-caps. So far this year the S&P/ASX SMALL ORDINARIES (Index: ^AXSO) (ASX: XSO) is lower by around 1%, compared to a 2% gain for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
But with an eclectic range of fast-growing small-cap shares in the index, I have a feeling it could catch up with the illustrious S&P/ASX 200 eventually.
Three small-caps in the index which I'm tipping for big things are as follows:
Amaysim Australia Ltd (ASX: AYS)
At this point in time Amaysim may be best known as a provider of cheap mobile phone plans, but this could be about to change. Within the next three months the company will attempt to shake up the home broadband industry by launching its own NBN plans. According to its recent release, the company will initially target 600,000 households across the Amaysim network that are aligned to the NBN rollout. Although it is a crowded market, one key advantage the company has is its asset-light model. I expect this to allow Amaysim to undercut the competition whilst still remaining profitable.
BWX Ltd (ASX: BWX)
BWX is the company behind the increasingly popular Sukin skincare range. It recently posted a 36.4% jump in half-year revenue to $37.5 million thanks to strong growth in both domestic sales and exports. Whilst the local market currently accounts for 78% of Sukin's sales, I expect exports to contribute significantly more in the future thanks to its launch in Boots pharmacies in the United Kingdom. Its shares are not cheap at 32x trailing earnings, but it's a premium I'd be willing to pay if this growth can continue.
Collins Foods Ltd (ASX: CKF)
Collins Food operates 191 KFC and 20 Sizzler company-owned restaurants throughout Australia. As well as this, the company has 69 franchised Sizzler restaurants based in Asia. Whilst these restaurants have performed well recently, the major attraction to Collins Food in my opinion is its expansion into Europe. Last year the company acquired 11 KFC restaurants in Germany. But considering KFC Germany aims to rapidly expand the brand's presence in the country, I think Collins Food has arrived in the country at an opportune time.
