CHU KONG Shipping Development is one of the dominant river-trade service providers in the Pearl River Delta region. It does shipping and trans-shipment, wharf cargo handling, storage as well as trucking. A listed vehicle of the Guangdong provincial government, it also has stakes in a port in Dongguan and an expressway in the province. China Everbright Research has put a buy tag on the stock, saying the firm can capitalise on the delta region's higher economic growth level. China Everbright puts economic growth in Guangdong and surrounding delta areas at 9.2 per cent. It believes Chu Kong Shipping maintains good relations with shipowners and that its 'one-stop shop' service policy allows it to maintain a fair control over its turnover and prices. However, the buy recommendation is mainly derived from Chu Kong's strong net cash position and solid balance sheet. Even without factoring in possible acquisitions, Chu Kong is trading at discounts to net asset value and book value and holds a forward price-earnings ratios of less than five times.