When it comes to growth shares I believe Australian investors are spoilt for choice. But with so many to choose from it can be hard to make a decision on which to buy.
To help you narrow it down I've picked out 10 shares which I think have explosive growth potential. Here's why:
a2 Milk Company Ltd (Australia) (ASX: A2M)
Despite the problems that the embattled Bellamy's Australia Ltd (ASX: BAL) faced in China, a2 Milk continues to see sales rise at an explosive rate. I expect another strong year of growth for this dairy company, which could make it an opportune time to snap up its shares.
Ardent Leisure Group (ASX: AAD)
Unsurprisingly the drop in visitor numbers at Dreamworld since October's tragic incident has weighed heavily on its shares. But I believe investors should focus more on the rollout of its highly profitable Main Event centres in the United States. Currently it has 27 centres operating, with management targeting upwards of 200 in total.
Amaysim Australia Ltd (ASX: AYS)
After shaking up the mobile phone industry with its low-cost plans, Amaysim aims to do the same in 2017 with home broadband through the NBN. Due to its asset-light model I believe the company should be in a position to undercut the competition whilst still remaining highly profitable.
ChimpChange Ltd (ASX: CCA)
This digital banking company aims to disrupt the U.S. banks by providing millennials and the underbanked with no monthly account fees. Not only has the company been growing its customer base at a rapid clip, but it has launched a range of features in the last 12 months to increase monetisation.
Capilano Honey Ltd (ASX: CZZ)
The leading honey producer is one of my favourite growth shares on the ASX. Its shares are changing hands at just over 14x trailing earnings, which I believe is extremely cheap considering its strong growth potential from the launch of its new Beeotic range and expansion into the China market.
Galaxy Resources Limited (ASX: GXY)
This lithium miner would be my pick of the resources industry right now thanks to its high-quality mine and low costs. It is also in the enviable position of not being able to pull lithium carbonate out of the ground quick enough to satisfy demand, even with its increasing production. If lithium prices remain favourably high then Galaxy stands to make bumper profits for years to come.
Premier Investments Limited (ASX: PMV)
The owner and operator of brands including Peter Alexander and Smiggle has grown its bottom line by an average of 15% per annum over the last five years. Although it may be hit slightly by a weaker British pound, I expect Smiggle's rapidly expanding UK operations will allow the company to continue this strong growth for a few more years at least.
RXP Services Ltd (ASX: RXP)
This ICT and digital professional services company had a fantastic FY 2016. The good news is that it looks like more of the same in FY 2017. A recent update revealed that the company started the fiscal year strongly and management expects revenue growth of 15%. At just 12x full year earnings RXP could be a bargain buy.
Smart Parking Ltd (ASX: SPZ)
Smart Parking has over 120,000 car park spaces under management in the United Kingdom and a total of 190 car parks under management worldwide. Although it hasn't quite reached profitability, I don't think it will be far away considering the insatiable demand for its parking bay sensor technology.
Webjet Limited (ASX: WEB)
Webjet is possibly the ultimate growth share on the ASX. Due to industry-beating bookings growth, this online travel agent has forecast for full year EBITDA from its continuing businesses to come in at $60 million in FY 2017. This is a huge increase on the $37 million it delivered last year. I believe this justifies the 27x forward earnings multiple its shares trade at.
