Country: Singapore Company: Creative Technology Recommendation: Reduce Brokerage: S G Warburg THE company is facing an uncertain future without a new product to replace sound cards, which enable personal computers to produce quality sound. Demand is peaking and the company is faced with contracting margins.
Contrary to perceived expectations, sound cards are unlikely to penetrate into the corporate market and will face saturation in the domestic sector. Competition from other multimedia cards combining audio, 3D graphics, video playback and game ports will result in a shrinking market for Creative's products.
Country: Thailand Company: Sahaviriya Steel Industries Recommendation: Sell Brokerage: Smith New Court AS Thailand's only hot-rolled coil (HRC) producer until 1998, SSI will benefit from strong local demand as the economy expands and global HRC prices rise.
The Sahaviriya group's long-standing relationship with local and foreign partners has enhanced SSI's competitive position in both sales and raw material sourcing. After suffering a loss in the first year, HRC earnings are expected to grow 213 per cent in 1995, owing to increased efficiency and higher utilisation.
But the stock trades at high price-earnings ratios compared to the building materials sector and the potential for share price appreciation is thus limited.
Country: Philippines Company: Philippines Long Distance Telephone Recommendation: Buy Brokerage: Salomon Brothers PHILIPPINES Long Distance Telephone's (PLDT) first quarter showed a 39 per cent increase in fully diluted earnings per share. Revenues were up 26 per cent and pre-tax profits 48.9 per cent.
