The lower the ASX share market goes, the better value the opportunities are, in my view. ASX growth shares could be a particularly good investment right now, due to their relatively attractive valuations and potential for them to deliver strong earnings growth from here.
Compounding is a very powerful financial force that helps businesses grow into larger ones over time.
It's very easy to underestimate the power of compounding. For example, you'd think it'd take around a decade for an investment to double in value if it's growing at an average of 10% per year. But, it actually takes less than eight years to double.
Growing even faster than 10% can deliver significant compounding. I think the below three ASX growth shares are very good prospects for delivering solid net profit growth and I'd happily invest $20,000 into them.
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Tuas Ltd (ASX: TUA)
Tuas is a rapidly-growing Singaporean telco. At its annual general meeting (AGM), the business reported it had reached 1.34 million active mobile subscribers and 36,200 active broadband services.
I'm confident the business can continue gaining market share in Singapore with its value-focused offerings. More users means more operating leverage as its costs are spread across a greater number of subscribers.
The ASX growth share is becoming increasingly profitable – in the first quarter of FY26 it made $9.1 million of net profit, which is more profit than it made in the entire 2025 financial year (of $6.9 million). It also made $44.2 million of revenue and $19.9 million of operating profit (EBITDA) in the first quarter of 2026.
With the bonus of the acquisition of Singapore competitor M1 on the horizon to boost its scale, I think Tuas' profit outlook is very compelling. If it can successfully expand beyond Singapore to other Asian countries then it could have an even stronger growth outlook.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is a leading business in the investment world. It has invested in stakes in a number of funds management businesses including Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Metrics, Coolabah, Aikya, Five V, Life Cycle and Pacific Asset Management.
It's not just a passive investor in these businesses, it helps them grow with services like seed funds under management (FUM), distribution and client services, middle office and fund administration, compliance, finance, legal, technology and other important infrastructure.
The FY26 half-year result saw net profit decline 11%, but that was only because of a reduction in performance fees generated (which are not likely to grow every year). Excluding performance fees, Pinnacle's half-year net profit increased 37% year-over-year and 11% half-over-half.
Its FUM may have reduced during the last few months because of the volatility, but the 33% drop of the Pinnacle share price since October 2025 looks like a great time to invest to me.
Nick Scali Ltd (ASX: NCK)
Nick Scali is one Australia's largest furniture retailers through its Nick Scali and Plush brands.
Rising inflation and the prospect of higher interest rates may be causing the market to push the Nick Scali share price. At the time of writing, it's down around 38% since the high in January 2026.
This looks like a great time to invest because the company is increasing its growth potential with its expansion in the UK. It's rebranding the Fabb Furniture stores in the UK to Nick Scali stores.
The UK has a much larger population than Australia, giving the ASX growth share a large addressable market to target. Additionally, Nick Scali can sell its own furniture in the rebranded Nick Scali UK stores, which comes with a significantly higher gross profit margin.
If Nick Scali can continue adding to its ANZ and UK store networks, it can grow sales and net profit, even if sales at existing stores don't grow as fast in 2026 as 2025.
The FY26 half-year result saw the company grow its total net profit by 36.4% to $41 million, while underlying net profit increased 23.1% on revenue growth of 7.2%, showing its ability to deliver rising margins.
