The fund manager Wilson Asset Management (WAM) has revealed two ASX shares that could deliver good earnings growth in the coming years.
WAM tries to fund undervalued growth companies that could outperform the market. Ideally, the investment team aims to find a catalyst that can accelerate returns for investors.
The fund manager runs a number of listed investment companies (LICs) including WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).
Every month, WAM likes to pick out some of the ASX shares that it thinks have compelling futures. Below are two of them, which are growing worldwide.
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Pro Medicus Limited (ASX: PME)
WAM describes Pro Medicus as a business that provides medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.
The fund manager noted last month that the business announced it had signed a seven-year, $25 million contract with the University of Washington for its academic health system.
The ASX share also announced a $12 million contract with Oregon-based Samaritan Health Services spanning eight years, which has a network that includes five hospitals.
WAM pointed out that contracts will see its cloud-engineered imaging platform implemented at the institutions and will reinforce Pro Medicus' "strong presence" in the north west region of the US.
The fund manager explained why it's optimistic:
We expect its strong sales pipeline will continue and we look forward to the possible announcement of new contracts in the months to come.
Pro Medicus recently reported its FY23 half-year result which showed revenue growth of 28% and net profit after tax (NPAT) growth of 31.5%.
PWR Holdings Ltd (ASX: PWR)
WAM described PWR Holdings as a business that specialises in cooling products and solutions to the motorsports and technology sectors.
In January, the company announced that it had acquired Bespoke Motorsport Radiators (BMR), which is reportedly one of the leading manufacturers and suppliers of high-performance motorsport radiators, intercoolers and oil coolers in the UK.
BMR has a four-year average revenue of £520,000 per annum.
WAM said that it's expected that BMR will operate as part of PWR Holdings Europe and expand the ASX share's manufacturing capabilities.
The fund manager explained:
We believe the acquisition will continue to expand PWR Holding's European business and strengthen its ability to execute large projects over the medium-term.
