2 exciting ASX small-cap shares to buy with global growth

These smaller stocks could deliver bigger returns. A fund manager has named two ideas.

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The investment team at Wilson Asset Management (WAM) have picked out two ASX small-cap shares that may be able to deliver solid long-term investment performance.

A small business isn't necessarily guaranteed to deliver stronger investment performance than ASX blue-chip shares, but it helps that they're earlier on in their growth journeys.

When we can identify a company at a good price then it could lead to attractive performance. Where can we look for opportunities? The WAM team highlighted two stocks in the WAM Microcap Ltd (ASX: WMI) portfolio.

Tuas Ltd (ASX: TUA)

Since the start of 2023, the Tuas share price has gone up by around 60%, as we can see on the chart below.

WAM described Tuas as a business that operates in the Singaporean mobile telecommunications market utilising its network infrastructure to provide mobile telco services.

The fund manager was impressed by the "strong" FY23 result during the month and it's "experiencing sustained growth" in its primary mobile business in Singapore.

The ASX small-cap share saw its mobile active services increase from 587,000 at 31 July 2022 to 819,000 at 31 July 2023, which helped revenue increase 50% year over year to $86 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) roughly doubled to $31.1 million.

WAM is "positive" on the company's ability to continue expanding its services, with the telco announcing its intention to focus on launching its 5G and fixed broadband services. The fund manager also believes that Tuas has a "strong pipeline in place to continue introducing attractive value plans to grow subscribers in FY24."

Cettire Ltd (ASX: CTT)

Since the start of 2023, the Cettire share price has soared over 110%, as we can see on the chart below.

Cettire listed on the ASX in late 2020 and is an online luxury fashion retail platform selling clothing, shoes and accessories from international high-end fashion brands. It sells over 500,000 products from 2,500 brands that use its "unique" business model.

It has only been listed on the ASX for around three years, but it has already delivered a lot of growth. Since the start of 2021, the Cettire share price has gone up by over 450%.

WAM noted that the ASX small-cap share achieved "significant growth" in FY23, with sales almost doubling to $416.2 million. The fund manager is attracted to the fact that the business has no inventory overheads and acts as a 'drop shipper'.

The investment team says that it has proprietary technology, which "enables scalability for customer acquisition and automated order fulfilment". In other words, its digital business model is well-suited to achieving greater margins as it fulfils more orders.

WAM pointed out that in September, the ASX small-cap share was added to the S&P/ASX 300 Index (ASX: XKO) which led to a 5% increase in the Cettire share price.

In July 2023, sales revenue increased by approximately 120% year over year, and the business is focused on achieving profitable revenue growth and self-funding.

Motley Fool contributor Tristan Harrison has positions in Wam Microcap. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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