What the analysts say

PUBLISHED : Tuesday, 21 April, 2009, 12:00am
UPDATED : Tuesday, 21 April, 2009, 12:00am

Francis Lun Sheung-lim, general manager, Fulbright Securities

Pros: Zhongwang is the industry leader and its products are mainly for domestic sale, making it more resilient than export-oriented companies. Pricing is also reasonable

Cons: Investors may have to buy the shares at the cycle peak. Oversupply in the mainland downstream market is also a concern

Conita Hung Lai-ping, head of equity research, Delta Asia Financial Group

Pros: The company may benefit from the mainland's infrastructure boom

Cons: Its price-earnings ratio is not that attractive as there are other choices that may benefit from the infrastructure boom. Investors also face the risk of a market downturn between the subscription period and its trading debut

Kenny Tang Sing-hing, executive director, Redford Securities

Pros: It focuses on making aluminium products used in infrastructure projects and therefore can benefit from government policies. It also has a high profit margin and a huge market share

Cons: Market competition is severe, thus putting pressure on product prices, and the high profit margin may not be sustained

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