CHINA Foods Holdings is active in food processing and marketing in the mainland, property investment in Hong Kong, and investment holding.
Brokerage ABN-Amro Hoare Govett recently put a buy on the stock, praising the company's defensive earnings.
China Foods is an attractive defensive play amid concerns over the probable slowdown in both the Hong Kong and mainland economies.
Earnings per share at China Foods are expected to grow at a robust rate of 187 per cent in 1997 and 43 per cent in 1998. This will be helped by the improvements in the company's food operations.
China Foods is one of the few focused red-chip companies, and with its exposure to the mainland's food industry it probably will be insulated from the economic slowdown.
After the company disposed of its entire stake in Seapower Resources last year and East Asia Garden earlier this year, it is estimated to have net cash balance of more than $1.1 billion.
