2 ASX 200 shares that could be top buys for growth

Bapcor and Sonic Healthcare are two ASX 200 shares with growth potential.

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There are plenty of S&P/ASX 200 Index (ASX: XJO) shares that have grown a lot over the last two years.

But over the next five or so years, there are some ASX 200 shares that are expecting their underlying earnings to continue to grow.

These two ASX 200 shares could be good options to consider:

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare has operations all around the world, in places like the USA, Germany, Australia, UK, Ireland, Switzerland, Belgium and New Zealand.

The company is continuing to grow its base business, which excludes COVID-19 testing revenue. In FY21, base revenue increased by 6%.

But, it has been the COVID testing that has really driven the ASX 200 share's profit higher thanks to higher profit margins. COVID surges continue to occur due to the Delta variant, with the northern hemisphere seeing elevated COVID cases again.

Sonic has performed many millions of tests, and the ASX 200 share has been utilising and leveraging its existing infrastructure. In FY21, revenue rose 28% to $8.8 billion and net profit grew 149% to $1.3 billion.

In the first four months of FY22 to 31 October 2021, its base revenue had increased by another 6% to $3.09 billion. That shows that the core business continues to grow. FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 16% to $991 million.

According to Commsec, the Sonic Healthcare share price is valued at 19x FY22's estimated earnings with an expected dividend yield of 2.4%.

Bapcor Ltd (ASX: BAP)

Bapcor is one of the largest auto part businesses in the Australasian region. Its core business is the automotive aftermarket. Its businesses span the supply chain, including trade, commercial vehicles, specialist wholesale and retail.

Some of the businesses that it owns in its stable includes Burson Auto Parts, Precision Automotive Equipment, BNT (NZ), Truckline, WANO, Autobarn, Autopro, Midas, ABS and Battery Town.

Bapcor has started a Burson chain of outlets in Thailand, offering direct access to the Asian market. The ASX 200 share has also made an investment in Tye Soon, which Bapcor describes as the most prominent independent auto parts distributor in Southeast and Northeast Asia with 60 locations across Singapore, South Korea, Malaysia, Australia, Thailand and Hong Kong.

FY21 saw the business achieve revenue growth of 20.4%, pro forma EBITDA growth of 28.8% to $279.5 million and pro forma net profit after tax (NPAT) growth of 46.5% to $130.1 million.

The business is looking to expand its store footprint in Australia and New Zealand, to be the closes to the customer base, with an increase from 1,100 locations to 1,500 locations. It's also working on its supply chain to be more efficient with new distribution centres. Another area of focus from Bapcor is to increase its profitability through its own brand expansion, from around 30% to 45% of sales.

According to Commsec, the Bapcor share price is valued at 22x FY22's estimated earnings.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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