Growth shares are shares that are expected to grow significantly faster than the market average. Growth shares often have a unique market offering that puts them ahead of others in their industry – they may have a very loyal customer base or significant market share. Profits are frequently reinvested to spur even higher future growth rather than paid out as dividends, and investors therefore expect to receive returns in the form of capital gains.
If you've got a spare $5,000 to put into the market today, here are 3 ASX growth shares that are worth a closer look.
WISR Limited (ASX: WZR)
Wisr is advertised itself as Australia's first neo-lender and offers personal loans up to $60,000. It is currently experiencing record growth thanks to its innovative distribution and marketing initiatives. Daily loan settlements in November were up 105% compared to the previous year and Wisr is now headed towards a run rate of $150 million originations a year. A significant uplift in earnings is expected from 2QFY20 as Wisr transitions to an on-balance sheet loan funding model.
Wisr brands itself as having a vision of improving customers' financial wellness. Wisr@Work, a workplace financial wellness tool, and Wisr App, a debt reduction tool, were launched last year. Wisr's value proposition allows the company to sell its loans through employers, health insurers, and superannuation providers which distribute its products to their members.
Nuchev Ltd (ASX: NUC)
Nuchev produces and distributes a range of goat milk infant formula products to customers in Australia and Asia. Goat milk has higher levels of certain vitamins and minerals than cows milk, as well as probiotics that may aid the digestive process. The company reported an almost threefold increase in revenue in FY19 with plans to continue its rapid expansion.
Nuchev initially launched in China in late 2016 and is in the process of expanding its distribution footprint across the country. China's infant formula market is worth $22 billion and growing, driven by increasing disposable income. Nuchev launched in Hong Kong last year and is also considering expanding into Taiwan, Japan, South Korea, Malaysia, Indonesia, Thailand, and Singapore.
Audinate Group Limited (ASX: AD8)
Audinate's technology distributes digital audio and video signals over computer networks rather than via analog cables. It has been used by Wembley Stadium, Sydney Trains, and the Super Bowl. More than 2,100 products are available on the market which are compatible with Audinate's technology, which is more than 6 times greater than its nearest competitor.
Audinate's revenue grew 44% in FY19 while operating cash flow grew 260%. The company expanded into Germany, China and Japan during the year, significantly expanding its global footprint. Significantly, Audinate launched its first video products last year, which doubled the company's total addressable market.
