Kerry boasts healthy war chest
Kerry Properties Recommendation: Buy Brokerage: Jardine Fleming KERRY Properties is involved in property development and investment, godown operations and infrastructure-related investments in Hong Kong and the mainland.
This year, the company has bought an industrial/office site and taken a 25 per cent stake in an Australian residential development.
Net debt to equity is only 9 per cent, and short-term debt to cash flow is 17 per cent, meaning Kerry can afford to spend $4 billion.
Wharf Holdings Recommendation: Hold Brokerage: Indosuez WI Carr WHARF is a conglomerate with property, infrastructure, hotel and communications businesses in Hong Kong, the mainland and the United States.
Its 1997 results were far below expectations, with net profit down 16 per cent to $1.9 billion, and recurring earnings down 13 per cent.
The net profit shortfall was due to a $1.7 billion provision against listed investments which must have been made during the year.
Aeon Credit Service Recommendation: Buy Brokerage: ING Barings AEON Credit provides financial services, including hire-purchase financing and personal loans.
Its earnings per share average growth rate of 31 per cent for the next three years is well ahead of the 8 per cent average for small banks and financial stocks.
Card-holder numbers are seen growing by 29 per cent next year.
Shenzhen Expressway Co Recommendation: Buy Brokerage: Merrill Lynch SHENZHEN Expressway was established by the city government to develop, operate, and manage highways and expressways.
It is attractive in net asset value and price earnings ratio. It is trading at a 35 per cent discount to estimated net asset value of $2.97 a share, second only in NAV discount to Anhui Expressway.
