First Pacific Co Recommendation: Speculative buy Brokerage: Jardine Fleming FIRST Pacific Co is a regional conglomerate whose operations include marketing and distribution, banking, property services, and telecommunications.
It reported interim profit of $860 million last week, up 21 per cent, and ahead of expectations due to better-than-expected earnings from its trading arm, Hagemeyer.
A trading opportunity has emerged as First Pacific, a heavily- punished stock during the recent market slide, is trading at a discount to its break-up value.
The firm's fundamentals should be treated with caution as little good news is seen for a while.
Wharf Holdings Recommendation: Buy Brokerage: Nikko Research Center WHARF Holdings is a conglomerate with interests in property, infrastructure, cable television, and telecommunications.
The firm's interim results surpassed expectations due to a large exceptional gain from the disposal of long-term investments and a 4 per cent growth in rental income.
Net profit excluding exceptional items is expected to surge 53 per cent in the second half of the year due to improving rental income and greater development profits.
