Tomorrow International Holdings Recommendation: Buy Brokerage: Tai Fook Securities TOMORROW International designs, develops, manufactures, and sells electronic products including digital thermometers, digital timers, electronic clocks, and car accessories.
It should maintain its high profit margin this year, with orders for advanced liquid-crystal displays and quartz crystal expected to grow strongly, fuelled by strong demand for computers and telecommunications equipment. Tomorrow plans to further boost earnings by doubling its manufacturing capacity of printed circuit boards, and introducing new production lines of glass electrodes.
The stock trades at a price-earnings ratio of five times for the 1996 financial year and 3.9 times for 1997, making it appear undervalued compared to others in the industry.
New World Development Recommendation: Buy Brokerage: Dharmala Securities NEW World Development is an investment holding company with subsidiaries active in property development, investment, hotel operations, transport, and telecommunications.
Interim earnings to December grew 5.9 per cent, boosted by hotel operations and a $1.1 billion exceptional gain from the listing of its New World Infrastructure unit.
Hotel operations are expected to grow 20 per cent per year over the next two years as occupancy and room rates continue to rise.