Hysan Development Brokerage: Asia Equity Recommendation: Sell HYSAN Development is active in property investment, property development, and capital market investment. Most of its properties are in Causeway Bay. The stagnant property market and the absence of any new developments contributing to earnings in 1996 suggest its growth this year will be less than exciting. Hysan's earnings from Causeway Bay appear to be protected by low supply but tenants in the area are very price mobile and may move to more decentralised locations as rents rise. Johnson Electric Brokerage: Sassoon Securities Recommendation: Buy JOHNSON Electric designs, manufactures, and markets custom-made micro-motors for use in office and leisure products, tools, toys, and cars. Johnson will increase its daily production capacity from 650,000 to 1 million units by 1998, anticipating rising demand from manufacturers of office equipment, power tools and audio-visual products. Sales should grow an impressive 22.9 per cent in the 1997 financial year and 19.6 per cent in 1998. Van Shung Chong Brokerage: New China Hong Kong Research Recommendation: Buy VAN Shung Chong trades and distributes steel, reinforcement bars, plastic resins and injection moulding machines. It has operations in Hong Kong and China. The company is set to benefit from the strong demand for rebar and H pile distribution in Hong Kong, which should continue until the end of the century. It should also gain from its 66.7 per cent-owned joint venture with Shanghai Baoshan Steel Corp.