The small end of the market is exciting because of how much those ASX growth shares could add to their profits and their share prices.
The investment team of the listed investment company (LIC) WAM Microcap Ltd (ASX: WMI) are looking for the "most exciting undervalued growth opportunities in the Australian micro-cap market".
Two businesses in the WAM Microcap portfolio at the end of October were a communications infrastructure and services provider, and a property developer and investor. Let's get into what could make these compelling investments.
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GenusPlus Group Ltd (ASX: GNP)
WAM described GenusPlus as a national power and communications infrastructure contractor. In October, the GenusPlus share price climbed by more than 14% amid consecutive contract wins.
The company won additional Western Power packages on the Clean Energy Link – North (CELN) program and related underground power works, with a total value of approximately $50 million.
The ASX growth share followed this up with an approximate $60 million decarbonisation contract with Fortescue Ltd (ASX: FMG) at Christmas Creek for 30km of overhead power distribution infrastructure, along with the construction of fast-charger and pit power facilities at Eliwana and Flying Fish.
WAM said the cadence and scale of these awards reinforced revenue visibility and highlighted GenusPlus Group's positioning on Western Australia's network upgrade cycle, which supported sentiment through the month. The fund manager concluded its thoughts on the business with the following:
Longer term, we believe the expanding backlog which now includes the major CELN network will underpin earnings growth across transmission, distribution and resources.
Cedar Woods Properties Ltd (ASX: CWP)
WAM described Cedar Woods Properties as a property developer and investor primarily interested in urban land subdivision and built form development for residential, commercial, and retail purposes.
The fund manager stated that the ASX growth share recently reported a strong quarter for the three months to September 2025. This reflected "excellent execution, macroeconomic tailwinds and the ongoing structural housing shortage in Australia".
Property settlement volumes rose 17% compared to the same quarter in 2024, while management upgraded the FY26 net profit growth guidance from 10% to 15%.
WAM likes that the company has "high earnings visibility", with over 90% of FY26 revenue already pre-sold – this is the most visibility it has had "in decades".
The fund manager then explained why it's optimistic about the ASX growth share for the future:
With approximately 9,400 lots, dwellings and office units across 35 projects in Queensland, Victoria, Western Australia and South Australia, we believe Cedar Woods Properties is well positioned to benefit from population growth, limited housing supply and supportive government policy that is expected to sustain demand over the medium term.
