There are ASX shares in the Asia Pacific region that are delivering fast revenue growth, but the share prices have fallen recently.
Businesses that are growing revenue quickly gives it a chance of also growing profit at a faster rate over the long-term.
Betashares Asia Technology Tigers ETF (ASX: ASIA)
This ASX share aims to give investors exposure to the leading Asian technology giants outside of Japan. But the share price has fallen 21% since the middle of February 2021.
The exchange-traded fund (ETF) owns 50 positions, though you may have heard of some of the biggest ones: Tencent, Alibaba, Samsung Electronics, Taiwan Semiconductor Manufacturing, Meituan, Pinduoduo, JD.com, Sea, Netease and Infosys.
BetaShares says that due to its younger and tech-savvy population, Asia is surpassing the West in terms of technological adoption and the Asian technology sector is anticipated to remain a growth sector.
It’s invested in a number of quality businesses. For example, Alibaba is China’s largest retailer which has operations in e-commerce, retail, internet, AI and technology. Alibaba’s online sales and profit surpassed all US retailers combined in 2015. Samsung is one of the world’s biggest smartphone manufacturers. Taiwan Semiconductor is the world’s largest independent semi-conductor foundry – most of the world’s semiconductor companies are customers including Nvidia and Qualcomm.
The index that the Betashares Asia Technology Tigers ETF tracks has delivered an average return per annum of 24.1% over the last three years.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster is one of the fastest-growing retail ASX shares.
The business runs a model where products are shopped directly from customers to suppliers. This means that delivery is faster and Temple & Webster doesn’t have to hold as much inventory. It also means that the business has a larger product range. Temple & Webster also has a growing private label range that offers good margins.
Since 10 May 2021, the Temple & Webster share price has fallen by 15%.
Management believe that there is a large opportunity in the online retail space. That’s why it’s planning to invest in various parts of the business including brand awareness, technology, data, delivery, 3D and AI capabilities to make the customer shopping journey easier, new categories, new products and exclusive ranges.
After this investment phase, the ASX share is expecting higher levels of profitability due to greater scale benefits including better supplier terms, more repeat customers (reducing marketing), a slowing investment in fixed costs and a higher amount of exclusive products which will come with higher gross margins.
Longer-term profit margins are expected to be higher than offline competition.
Temple & Webster CEO Mark Coulter had these positive words about the future:
You only need to look at the US to see how the e-commerce market is playing out, and why we remain bullish about the shift from offline to online. We are at the start of this once in a generation shift, and now is the time to put our foot down to secure market leadership and ensure we are the brand for the next generation of furniture shopper.