Sun Hung Kai Properties Recommendation: Buy Brokerage: Indosuez WI Carr SUN Hung Kai Properties is involved in development of properties for sale and rental. It also is active in hotels, construction, finance, insurance and telecommunications. The company recently won the tender for a site in Leighton Hill, agreeing to pay the Government $3.6 billion. The successful tender should help clear away some of the uncertainty regarding the company's cash flow and liquidity, and help the flagging share price rebound. Earnings forecasts for 1998 and 1999 have been raised to account for better than expected selling prices at the La Palais development in Tai Tam. Group Sense International Recommendation: Buy on weakness Brokerage: Cheerful Securities GROUP Sense designs, manufactures and sells electronic products such as personal dictionaries, translators and telecommunication products. The company rebounded from reporting a loss in 1996 to a $60.5 million profit last year as its diversification strategy paid dividends. Group Sense also penetrated the mainland market successfully with low-priced products and expanded its customer base by designing electronic dictionaries with new features. The company's sales are expected to rocket to more than $1 billion this year, helping net profit to grow a handsome 71 per cent to $103 million. China Resources Enterprise Recommendation: Buy Brokerage: South China Brokerage CHINA Resources is a mainland-backed conglomerate with interests in warehouse and cold-storage operations, beer manufacturing and property development. The company recently reported a 161 per cent surge in net profits to $1.56 billion last year, helped by property sales and organic growth of its other businesses. Earnings this year will be driven by sales of Hong Kong property Villa Esplanada and stable growth in its food and beverage, godown and cold-storage units. The company is backed strongly by its parent China Resources Holdings and new asset injections, including power plants and highway projects, are being planned. Ocean Grand Holdings Recommendation: Speculative buy Brokerage: China Everbright Securities OCEAN Grand makes and sells aluminium extrusion materials for the manufacture of window frames, door frames, curtain wall systems and interior decorating. The company is regarded as one of the five top manufacturers of aluminium extrusion materials in the mainland, in both sales and production capacity. The increasing use of aluminium in construction, coupled with the boom in the mainland's construction industry, have boosted demand for the company's products. Inventory and credit controls are impressive compared with other industrial companies, which is a key merit for the company.