I love finding S&P/ASX 300 Index (ASX: XKO) shares that are rapidly growing and have the potential to become significantly larger.
Tuas Ltd (ASX: TUA) is one of the businesses delivering incredible progress and could one day become one of the ASX's blue-chip shares, in my view.
It's already fairly large, with a market capitalisation that's measured in billions. But, the ASX 300 share's pace of growth and an upcoming acquisition make me believe the company has a very good future.
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Strong growth
The Singaporean telecommunications business has rapidly built a subscriber base of more than 1 million mobile users in the Asian country. In the FY25 first-half period, its mobile subscribers increased by 23.7% to 1.16 million.
That subscriber growth led to the business delivering revenue growth of 33.8% to $73.2 million. This scaling is enabling a higher operating profit (EBITDA), which reached 45.2% in HY25, up from 41% in HY24.
With this core part of the company, I'm expecting its profit margins to rise as it adds more subscribers to the total base.
The organic growth of the Tuas business is impressive, and the company is about to become significantly bigger once it completes an acquisition of one of its competitors.
Acquisition
The ASX 300 share is acquiring M1, another Singapore-based telco.
By making this acquisition, Tuas will significantly increase its mobile and broadband market shares, revenue, and EBITDA, giving it stronger scale to invest in growth while also taking out a major competitor in the market.
The acquisition is expected to be highly beneficial for earnings per share (EPS) of Tuas from the first year. Excluding ICT, M1 had net profit after tax (NPAT) of S$74.3 million in the last twelve months, excluding any pro-forma synergies or financing impacts.
International expansion?
While Singapore doesn't have a large population, I'm optimistic the ASX 300 share can expand to other countries that have much larger addressable markets than Singapore.
Its nearby neighbours of Malaysia and Indonesia would make a lot of sense to create a presence there because Singapore only has a fraction of the population size of those two countries.
If Tuas could achieve a similar market share in either of those countries as it does now (prior to the M1 acquisition), then it could become a significantly more profitable business than it is today, and I believe it'd be well on its way to becoming an ASX blue-chip share.
Under the leadership of David Teoh, I think this ASX 300 share has a very promising future.
