Set for China demand
C.P. Pokphand Recommendation: Buy Brokerage: ING Barings C.P. Pokphand is the listed business which deals with the agricultural and industrial investments of its parent, the Charoen Pokphand Group. It trades agricultural products, has feed-mill and poultry operations, produces and sells motorcycles, and also sells car accessories.
The counter is suffering from expectations of poor earnings in 1996, but this should not detract from the solid underlying qualities and strengths of the company's agri-business. Increasing meat consumption in China will accelerate demand for the firm's feed, day-old chicks and broilers, and the company's investments in the early 1990s make it well positioned to supply rising demand.
Tak Sing Alliance Recommendation: Buy Brokerage: OSK Asia Securities TAK Sing Alliance manufactures clothing, operates a restaurant and entertainment chain, and is involved in property development.
The huge potential for the garment market in China is expected to be a driving force of profit growth, boosted by growing affluence and increasing brand awareness on the mainland.
The company plans to spin off its United States garment business soon, a move expected to generate US$15 million for further expansion.
Liu Chong Hing Bank Recommendation: Buy Brokerage: South China Brokerage LIU Chong Hing provides banking and related services and has branches across Hong Kong.
The bank announced 20 per cent earnings growth to $270 million for the six months to the end of June, mainly due to the control of operating and interest expenses.
The full-year forecast is maintained at 22 per cent, helped by an expected flow of capital from China since credit easing on the mainland in May.
