From the Fin Review 13/06/2025 - Morgan Stanley Summit in...

From the Fin Review 13/06/2025 - Morgan Stanley Summit in Sydney
https://www.XXXXXXXXXXX.com/markets/equity-markets/three-small-cap-stocks-that-fundies-tip-are-on-the-rise-20250611-p5m6ol

‘Very unique’

TPG Telecom Singapore, now known as Tuas, was the stock pick for Tobias Yao, a portfolio manager at Wilson Asset Management.

Now third-largest communication company in Australia, the fund manager praised Tuas’ quick expansion, which he said had not harmed its profit margins.

“It’s something very unique that it has, being able to start from zero market share to 12 per cent now. Their earnings margin is more than twice that of most of the large players, even at half the size,” Yao explained.

“They’ve done this incredible job of growing very comfortably in the last four years, and it will be even more exciting when they tackle the mass market,” he said.

The fund manager said he expected Tuas’ expansion to continue because its business model could be easily replicated in other regions, and its technology was much cheaper to run than its rivals.

Even though its valuation is high – the shares have jumped 44 per cent in the past 12 months – Yao believes it’s still a good bet.

“It’s very hard to find companies that are growing at 20 per cent plus with more than 40 per cent EBITDA margin in the current market,” he said.