Better Tomorrow in sight

PUBLISHED : Sunday, 26 May, 1996, 12:00am
UPDATED : Sunday, 26 May, 1996, 12:00am

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.


The company will launch more properties in the second quarter, including Discovery Bay 4C, aimed to lift property development profit to $2.27 billion this year.


Zhenhai Refining & Chemical Co Recommendation: Buy Brokerage: Standard Chartered Securities ZHENHAI Refining is a Chinese state-run firm that produces and sells petroleum products such as gasoline, diesel fuel, and kerosene. Net profit in 1995 rose 26 per cent on the back of strong increases in sales of diesel, gasoline, chemical feed oil and liquefied petroleum gas.


The completion of its Number 1 Crude Unit in December boosted the company's primary processing capacity from one million tonnes per year to eight million, making it the third-largest domestic refinery.


The upgrade also increased Zhenhai's capacity to process lower-priced Middle East sour crude and heavy crude, which this year will supply 35 per cent of processing volume, up from 28 per cent.


 

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