The ASX shares I'm most excited to buy in 2025

These stocks have a lot of potential, in my opinion.

| More on:
A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I rate plenty of ASX shares as exciting investments that look like good buys today for 2025 and the long term due to their valuations and growth plans.

There are many shares in my portfolio that I'm glad I own, but I wouldn't say I'm excited about all of them. Some are steady, defensive stocks, and I appreciate their resilience.

But I'm very excited about the two ASX shares we'll look at in this article. I own one (with plans to buy more when I have available funds), and I'm thinking about adding the other top ASX growth share to my portfolio this year.

One taps into Southeast Asia's large potential, while the other delivers mission-critical software. Let's explore.

Tuas Ltd (ASX: TUA)

This is the most exciting ASX growth share in my portfolio, in my view. It is based in Singapore and has rapidly grown its presence in the country over the last few years.

Created with Highcharts 11.4.3Tuas PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

The company recently announced its FY25 first quarter update at the annual general meeting (AGM), with active mobile subscribers rising 26.6% year over year to 1.11 million. This is a key revenue driver and suggests there could be significant revenue growth in FY25.

Tuas is the sort of business that can grow its profit margins as it scales. That was evident in FY24 with the operating profit (EBITDA) margin climbing to 42%, up from 36% in FY23. It achieved an EBITDA margin of 45.3% in the first quarter of FY25 and I think that margin can continue climbing in the coming years.

I believe the company can continue growing revenue and earnings for many years because I expect the company will expand to countries with much larger populations. Malaysia and Indonesia could be among the first two expansion markets.

Tuas could become a much bigger business in five and 10 years, which is why I'm excited about this ASX share.

TechnologyOne Ltd (ASX: TNE)

The second ASX share on my buy list in 2025 is TechnologyOne. I'd describe this company as one of the leading tech shares on the ASX.

Created with Highcharts 11.4.3Technology One PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

TechnologyOne provides a software-as-a-service (SaaS) enterprise resource planning (ERP) solution that can be accessed from any device, anywhere, and is supposedly easy to use. Its clients include more than 1,300 businesses, government agencies, local councils and universities.

The ASX share aims to grow revenue from its existing client base by 15% each year. It's doing a great job, achieving 17% growth in FY24. The company also invests significantly in software development each year, helping unlock further revenue growth as customers purchase more products and modules.

TechnologyOne aims for at least $1 billion of annual recurring revenue (ARR) by FY30 — it reported $470.2 million of ARR in FY24. The company also thinks its profit before tax (PBT) margin can reach 35% in the coming years — in FY24 the PBT margin was 30%.

With the business expecting rising revenue and a growing profit margin, it could deliver significant net profit growth over the next five years. I'm excited by what it could achieve, particularly if it can gain further traction in the UK. FY24 UK ARR increased by 70%.

I believe it can become larger in FY25 and grow significantly over the rest of the decade.

Motley Fool contributor Tristan Harrison has positions in Tuas. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Growth Shares

Top brokers name 3 top ASX growth shares to buy now

Why are brokers feeling bullish on these names? Let's find out.

Read more »

Two plants grow in jars filled with coins.
Growth Shares

3 ASX 200 growth stocks up more than 100% in 1 year that could charge higher

It's been a memorable year for shareholders of these 3 companies.

Read more »

Afterpay share price a happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.
Growth Shares

The pros and cons of buying Zip shares in June

Should investors buy now or wait until later?

Read more »

A smiling woman holds a Facebook like sign above her head.
Growth Shares

3 ASX growth shares I'd buy for the next 10 years

Let's see why these shares could be top picks for the long term.

Read more »

wheelchair user in an office talking on mobile phone
Growth Shares

Why I'd buy this ASX growth share instantly

I’m calling on this stock to deliver strong returns.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Growth Shares

2 ASX growth shares to buy in June: experts

These businesses have strong growth potential.

Read more »

Rocket powering up and symbolising a rising share price.
Growth Shares

Buy these stellar ASX growth shares with $1,000

Analysts think these shares would be top buys right now.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Growth Shares

These ASX growth shares could rise 18% to 30%

Let's see which shares are being tipped to rocket.

Read more »