Li & Fung Recommendation: Hold Brokerage: Crosby LI & Fung is considered an excellent play on the continuing emergence of Asia as a low-cost manufacturing source for mass-produced consumer products. The company is expected to secure sustainable strong growth and should therefore be a core long-term holding for any small-cap fund, the brokerage says. However, the stock has enjoyed a good run recently and is nearing its full valuation. Crosby's target valuation of the company is 11 times prospective earnings which, based on the brokerage's full-year 1996 forecasts, would value the stock at $6.71 - 17 per cent above current levels. Holding rather than aggressive buying is recommended at these levels. Swire Pacific Recommendation: Buy Brokerage: Crosby SWIRE Pacific's interims were mainly attributed to a $1.02 billion development earnings contribution from the disposal of Robinson Place. According to the brokerage, the company appears on course to achieve 21 per cent growth for the full year, implying earnings per share of $4.23. Swire's enjoyment of a premium rating to the market is expected to continue and the brokerage's buy recommendation stays intact. Hongkong Electric Holdings Recommendation: Sell Brokerage: New China Hong Kong Research THE brokerage sees only limited upside potential, because of the mature market on Hong Kong Island and because it says that the jump in demand for electricity upon completion of the Central/Wan Chai reclamation property development will come near the turn of the century. The management had plans to expand investments outside Hong Kong but, unlike its counterpart China Light & Power, no projects have been confirmed, the brokerage says. It believes Hongkong Electric is likely to record low growth, at least through the medium term. World Houseware Recommendation: Hold Brokerage: Dharmala Securities THE company's core operation should continue to show healthy growth on buoyant market demand and competitive pricing, while margins should improve with lower PVC pipes and fittings costs. The drastic cut in dividend payout should put some investors off and will keep pressure on the share price in the short term. The brokerage says its hold recommendation stays intact, but its forecasts for full-year 1996 and 1997 have been scaled down.