I love choosing ASX share investments that have a lot of growth potential. Ultimately, investing is about making returns. Fast-growing businesses have a great chance of delivering strong returns overall, in my view.
The two investments I want to tell you about are growing revenue and profit at a strong rate.
They're also tapping into markets beyond Australia's shores, which could mean much stronger returns over time because of the larger populations and the operating leverage that could come with that. I'd happily invest in either pick today for my portfolio.
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Tuas Ltd (ASX: TUA)
Tuas is a Singaporean telecommunications business that has built its market share to more than 1 million subscribers in a relatively short amount of time.
In FY25, Tuas grew its subscriber base by 19%, enabling revenue to climb by 29% to $151.3 million. The business has done a good job at capturing market share from incumbents with its good value offerings across different price points.
Pleasingly, the ASX share is benefiting from improving profit margins thanks to operating leverage. The FY25 operating profit (EBITDA) margin rose to 45%, up from 42% in FY24. This helps the bottom line accelerate faster than revenue.
The company recently reached positive net profit generation status, which is a good milestone. Its FY25 net profit was $6.9 million, up from a loss of $4.4 million in FY24.
I'm expecting net profit to rapidly grow from here, particularly following its acquisition of M1 (excluding ICT).
M1 is another of the challenger telcos in Singapore. The business (excluding ICT) made S$195.4 million of operating profit (EBITDA) in the 12 months to 30 April 2025, so the addition of this will significantly boost Tuas' profitability. The synergies Tuas expects to extract will also help justify the acquisition, beyond the immediate market share boost.
In the long-term, I'm hopeful the ASX share can one day gain a meaningful market share in other Asian countries such as Malaysia or Indonesia, significantly expanding its profit potential.
Global X S&P World Ex Australia GARP ETF (ASX: GARP)
I think this exchange-traded fund (ETF) is one of the best options for delivering investment returns. I believe that because it combines finding growing, quality businesses and buying them at a good price. That's essentially what 'GARP' means – growth at a reasonable price.
For the growth characteristic, the fund looks for businesses with solid 3-year sales per share growth and earnings per share (EPS).
On the quality characteristic, the GARP ETF looks for businesses with low financial leverage (meaning healthy debt levels) and a high return on equity (ROE). A high ROE means the company makes a high profit level for the amount of shareholder money retained within the business. The financial leverage check ensures the high ROE isn't being artificially created by loading up on debt.
On the attractive value characteristic, the fund is looking for an appealing earnings to price ratio, which is another way of calculating the price/earnings (P/E) ratio.
When you put all of those factors together for this ASX share, you're left with the some of the most compelling businesses in the world. I'm calling this an ASX share because we can buy it on the ASX and it's about shares.
I'm not going to try to predict what the future returns of the fund will be, but the historical returns have been strong. Of course, past performance is not a guarantee of future performance.
