Company: Singapore Airlines Country: Singapore Brokerage: Sun Hung Kai Research Recommendation: Hold THE global economic recovery and lower fuel prices helped SIA achieve 14.5 per cent growth in net income for financial year 1994-95. Passenger revenue increased 5.7 per cent to S$4.5 billion (HK$24.75 billion), despite a 0.5 percentage point drop in the seat factor to 70.9 per cent. Cargo revenue rose 11.2 per cent to S$1.17 billion. Earnings for financial year 1996 are expected to grow 15 per cent to $1.05 billion, bringing earnings per share to 82.3 cents. Given the sharp competition for passenger and cargo traffic, and the forecast continued strength of the Singapore dollar, SIA shares are fairly valued and likely to match the Singapore market's performance. Company: Hotung Chemical Country: Taiwan Brokerage: S G Warburg Recommendation: Buy HOTUNG Chemical is Taiwan's sole producer of Normal Paraffin (NP), supplying 60 per cent of the domestic market. NP is used mainly in the manufacture of detergents and laundry soaps. The industry outlook is bright, because a global shortfall will keep prices buoyant in the near to medium term. Worldwide demand is expected to grow at 3.5 per cent per annum for the rest of the decade. The company has undergone considerable restructuring in the past two years. For example, it staged a NT$500 million (HK$151 million) rights issue to finance expansion into two new lines of business - cement production and ethylene/acetylene bottling. Company: KL Kepong Country: Malaysia Brokerage: Kleinwort Benson Recommendation: Buy THE plantations company reported half-year net profit of M$110.2 million (HK$347 million), an increase of 126.5 per cent, for the period ending March 31. The strong performance was due to higher average palm oil and rubber prices, and a 183 per cent rise in contribution from chemicals and property. The company's shares are undervalued, trading at a prospective price earnings ratio of 19 times, with strong earnings growth prospects from expanding plantations and property development.