China Overseas Land & Investment

Tse Sui Luen set to sparkle

PUBLISHED : Sunday, 31 August, 1997, 12:00am
UPDATED : Sunday, 31 August, 1997, 12:00am

Tse Sui Luen Jewellery Recommendation: Buy Brokerage: Seapower Securities TSE Sui Luen makes and retails jewellery and invests in property.

The firm is set to maintain its strong growth momentum through advertising and promotion programmes and putting more emphasis on expensive gem-set jewellery.

With a firm foothold in Hong Kong, Tse Sui Luen is targeting other markets including the mainland, Malaysia, Singapore and Taiwan.

Profit is expected to surge by 49 per cent in the year to March 1998 and 32 per cent in 1999.

China Overseas Land & Investment Recommendation: Buy Brokerage: DBS Securities CHINA Overseas develops and invests in property in Hong Kong, Guangzhou, Shenzhen and Shanghai, and provides cleaning and security services.

The extensive connections of the company's mainland parent offer it access to lucrative contacts across the mainland as witnessed by the recent acquisition of three batches of infrastructure projects.

As one of the SAR's leading construction companies with more than 75 per cent of its contracts in government projects, China Overseas is poised to benefit from the upcoming construction boom.

Fountain Set (Holdings) Recommendation: Buy Brokerage: ING Barings FOUNTAIN Set is one of the world's largest dyeing and knitted fabric producers and also trades raw yarns.

The firm stands to benefit from the recent recovery of SAR clothing exports to the United States.

Fountain Set plans to relocate its Tuen Mun plant - its last Hong Kong-based operation - to the mainland by late next year, and this should significantly cut labour and other operating costs.

The stock is the cheapest textile play in the SAR, trading at a price-earnings ratio of only 5.5 times 1997 earnings, and offering an attractive dividend yield of 8.1 per cent.

Goldlion Holdings Recommendation: Buy Brokerage: Dharmala Securities GOLDLION manufactures, markets and distributes men's fashion items under its own brand name.

Results for the year to April were positive, with net profit growing more than 6 per cent to $300.6 million despite turnover being hurt by the closure of two stores.

Goldlion plans to step up its mainland expansion by increasing the number of franchised outlets from 120 to 200 this year.