SHKP share price expected to benefit as tender success dispels uncertainty

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.