SUN Hung Kai Properties develops properties for sale and rent, and also is active in hotel ownership, finance, public transport and telecommunications. Brokerage Core Pacific-Yamaichi has placed a buy rating on the stock, saying the company will gain synergy from its infrastructure projects. Sun Hung Kai Properties has responded to recent changes in government policy by speeding up pre-sale of its development projects and selling some more costly investment properties. The proceeds will be used to replenish the company's land bank at lower cost and to reduce borrowings, both helping the company rally once the property market improves. The company already has pre-sold about 82 per cent of residential projects to be completed this year, meaning development profits for 1998 are largely secured. Sun Hung Kai Properties has, meanwhile, been building up its infrastructure portfolio, notably through associates KMB Holdings and SmarTone Telecommunications. The company's 50 per cent-owned Route 3 toll-road project opening next month will help to create a synergy with its property projects in the northwestern New Territories. The stock is an attractive property play, especially compared with Cheung Kong (Holding) and Henderson Land Development, as it is trading at a steep 33 per cent discount to its net asset value.