Hong Kong and China Gas Recommendation: Buy Brokerage: Prime-East Securities THE current household penetration of Towngas stands at about 50 per cent. This will continue to rise as old housing units are replaced with modern residential buildings. The number of installed meters has been growing at the rate of seven to eight per cent in the past few years and management believes a minimum growth rate of six per cent can be maintained. Johnson Electric Recommendation: Hold Brokerage: Salomon Brothers THE brokerage expects lower than forecast earnings for the fiscal year to March 1995, due to be reported on Wednesday. Johnson appears to have experienced a weaker second half than the market expected. As a result, the brokerage fears the shares may face another round of selling on the back of earnings disappointment and continue under-performing the index. Realty Development Recommendation: Speculative buy Brokerage: Prime-East Securities UNLIKE other major property developers in Hong Kong, the company has no exposure to commercial and industrial properties, where demand is expected to remain weak in the medium term. About 90 per cent of its existing land bank consists of high-quality, well located residential developments, which are highly marketable. The company also has nearly 1,000 car parks on hand, carried at virtually no cost to the balance sheet. Van Shung Chong Recommendation: Speculative buy Brokerage: Seapower Securities VAN Shung Chong is one of three major steel stock holders in Hong Kong and holds about a one-third market share. Turnover in the 1995 fiscal year is expected to double that of 1994 while operating profit is forecast to rise more than 68 per cent.