I'm always on the lookout for ASX growth share ideas that could become the next sizeable growth name like CAR Group Ltd (ASX: CAR) or Altium.
This doesn't mean I'm expecting the business in this article to become worth tens of billions of dollars. But I want to find companies that have a very long growth runway.
I think the following two ASX growth shares are very exciting stocks for the next decade.
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Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a retailer of affordable jewellery with a global store network.
The company has already demonstrated significant growth potential by establishing a large store network in places like the USA, Australia, France, Germany, Spain, South Africa, and the UK.
This ASX growth share is exciting to me because it can expand its store network in existing markets and enter new countries. Places like Poland, Italy, Mexico, Vietnam and China are all fairly new additions and offer further growth potential.
As long as its same store (comparable) sales remain positive over time, I'm expecting Lovisa's total sales to grow at a pleasing double-digit pace in percentage terms in the coming years.
Further scaling in the company's existing markets could considerably help margins as it grows.
According to the forecast on CMC Markets, the business is trading at 21x FY28's estimated earnings, which I think is too low for how much long-term potential the ASX growth share has.
Tuas Ltd (ASX: TUA)
Tuas is one of the businesses I'm most bullish about, which is why it's one of my largest holdings.
It's an Asian telecommunications business based in Singapore. It is led by David Teoh, who helped TPG Telecom Ltd (ASX: TPG) become a fierce competitor before its merger with Vodafone Australia.
Tuas is using the same playbook – winning market share by offering great value to customers. It now has well over 1 million mobile subscribers in Singapore, with no signs of stopping.
Telco businesses are usually scalable, so more users are helping grow the company's operating profit (EBITDA) and net profit margins. I expect this trend to continue for the ASX growth share, helping the bottom line substantially.
Tuas is also working on acquiring competitor M1, which will give the ASX telco share a greater market share in mobile, broadband and other areas. This move is expected to significantly boost Tuas' profitability and will also add expertise to the overall business.
I believe Tuas will be a much larger business in five to ten years, particularly if it expands to neighbouring countries such as Malaysia or Indonesia.
