Hong Kong & China Gas Recommendation: Buy Brokerage: Nava SC Securities HONG KONG & China Gas is the oldest utility in Hong Kong and the sole supplier of Towngas throughout the territory.
The group stands to benefit from the construction of the Mass Transit Railway's East Kowloon line as the proposed To Kwa Wan station will be underneath the group's South gas plant.
Hong Kong & China Gas should be able to redevelop the site into 1.4 million square feet of commercial space for rental.
With steady growth from the gas business and future earnings from property developments, a buy recommendation is maintained.
Johnson Electric Recommendation: Buy Brokerage: ING Barings JOHNSON Electric manufactures micromotors for use in tools, toys and automobile accessories.
The group's share price has plunged around 20 per cent since the end of February without any fundamental reason.
Following a difficult financial year in 1996, 1997 promises to be excellent and 48 per cent earnings growth is expected.