HONG KONG Aircraft Engineering Co (Haeco) maintains and overhauls commercial planes and checks, refurbishes and reconfigures airframes and engines. Brokerage ING Barings has put a buy on the stock, saying the company's latest interim results indicate that its earnings cycle has bottomed. The decline of 6 per cent in pre-exceptional profits for the six months to June was significantly less than feared, indicating the company is at the bottom of a bad trading cycle. The three-year forecast has been revised upwards by 15 per cent and the fair value target for the share has been raised from $23 to $25. First-half turnover rose 1 per cent against a forecast 2 per cent fall, reflecting a moderation in pricing pressure. Earnings per share growth is expected to strengthen over the next three years driven by continued benefits of management control on labour costs and the moderation of overall Hong Kong wage inflation. The opening of a three-hanger facility at Chek Lap Kok in 1998 will offer long-term leverage to faster volume growth as Hong Kong becomes the uncongested hub in Asia's airline market. While some investors may prefer to wait for the counter's removal from the Hang Seng Index on August 30, there appears to be limited downside from any further selling pressure.