A significant portion of my portfolio is focused on ASX dividend shares. However, I do have some investments I'm excited about which are ASX growth stocks.
Businesses that are rapidly growing revenue can invest heavily in growth and potentially deliver rising profit margins.
The two ASX growth shares I'm going to talk about are the ones I have the biggest positions in because of how much they have already risen and how much I've invested in them because of my optimism about them. Let's get into why I'm still bullish.
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Tuas Ltd (ASX: TUA)
Tuas is my largest position in ASX growth stocks. The Singaporean telco recently completed a capital raising to buy a business called M1, which is one of the company's competitors in the country.
This acquisition will help boost Tuas' market share across prepaid mobile, postpaid mobile, broadband (residential and corporate), handset and equipment, and enterprise customers.
The combination is expected to generate significant operating expenditure and capital expenditure synergies and leadership in innovation. Tuas points to enhanced value and improved customer experience for both customer bases from "excellent network capacity and coverage, and superior service offerings".
In the 12 months April 2025, the two businesses combined produced revenue of S$948.8 million of revenue and S$256 million of operating profit (EBITDA).
I think the combined business can help unlock more subscribers, higher revenue, stronger profit margins and a better bottom line.
I'm hopeful that the ASX growth stock can expand in other countries over the longer-term such as Malaysia and Indonesia.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster sells 200,000 homewares and furniture products on its website. Many of these items are shipped directly by suppliers, enabling the business to offer a wider range of products and allowing the ASX growth share to have a capital-light model.
The company has a goal to reach $1 billion of annual sales in the medium-term, which is rapidly approaching because of much progress the business is making. In the FY25 result, it reported revenue growth of 20.7% to $600.7 million.
Rising profit margins is one of the key reasons why I'm so excited about this business. In FY25 alone, its operating profit (EBITDA) margin improved by 50 basis points to 5.1%. It's aiming for an EBITDA margin of at least 15% in the long-term.
I'm expecting further margin increases thanks to operating leverage due to its online model, increased AI usage across the business and increasing numbers of returning customers.
Additionally, the ASX growth stock could continue growing its home improvement (Bunnings-style) products revenue then I believe the company could become a very sizeable player in the retail world.
I plan to buy more the next time there are worries about retail spending.
