Conglomerate First Pacific has rung up impressive gains this year as expectations of windfall profits from its telecoms division have powered the stock.
The counter's recent inclusion in the Hang Seng Index has given it an extra charge, and it set a record high last week.
The stock has outperformed the Hang Seng Index by 110 per cent over the past two years and has risen 11 per cent since the HSI Services announced in July that the stock would join the Hang Seng Index.
But a slow down of profit booked from the group's property projects could provide an earnings disappointment in today's interim results, analysts say, and some speculate the share has now reached fair value.
UBS Securities conglomerates analyst Christopher Wilmot said: 'I would be surprised to see them outperform much further after the run they have had since the end of last year.' First Pacific, controlled by the Indonesian Salim group, has interests covering telecommunications, property, marketing and distribution, and banking.
The strength of the shares has been based mainly on the expectation of earnings from its telecom division and on the company's open management style.
Analysts say regional telecommunications will be the company's key earnings driver over the next several years.
