Cuts sharpen Swank's focus
Swank International Recommendation: Hold Brokerage: Cheerful Research SWANK is mainly involved in the design, manufacture and sale of optical frames, corrective glasses, sunglasses and opthalmic lenses worldwide.
Due to the closure of its United States and Canadian operations, at a cost of $23.5 million, the group's profits last year fell by 20.3 per cent, but it should benefit in the long run from cutting these non-profitable operations.
Wharf Holdings Recommendation: Buy Brokerage: Nomura Research WHARF is one of the largest local conglomerates with interests in property, infrastructure, hotels, terminals and warehousing, tunnel operations and telecommunications.
The group's cable television network Wharf Cable appears to be recovering and should contribute substantially to the group's earnings over time.
Wharf shares are currently good value as they are trading at a large discount to estimated net asset value.
Hongkong & Shanghai Hotels Recommendation: Buy Brokerage: South China Research HONGKONG & Shanghai Hotels operates the Peninsula Hotel, the Kowloon Hotel and the Peninsula hotels in the United States, Manila and China.
The group announced a 57 per cent increase in attributable profits to $435 million for the half year ended June 30, 1996.
Profits should continue to grow as the two hotels in Hong Kong will benefit from the hotel boom.