Prod-Art Tech Recommendation: Buy Brokerage: Smith New Court Prod-Art is emerging as a major supplier of pagers in China with a forecasted 20 per cent market share in 1993. Its excellent relationships with telecommunications administrative bureaus on the mainland and its low cost manufacturing capability should enable the group to remain highly competitive. The share price has yet to reflect the explosive earnings growth the group is experiencing, despite it rising 220 per cent since the listing in January. Demand for paging services in China is expanding rapidly with one million sold last year. The projection for 1993 is three million units, rising to five million by 1995. There are three major suppliers of pagers: National, Motorola and Prod-Art. Prod-Art's competitiveness relies on its strong mainland connections, its low-cost manufacturing capability allowing the group to offer 10 per cent lower prices, and strong after-sale services in China. The group is one of the few pager manufacturers with a telecom network entry permit issued by the Chinese government. CDL Hotels International Recommendation: Buy Brokerage: DMT Securities The aggressive moves by CDL investing $1.9 billion to buy three prestigious hotels - the Nikko (Hongkong), Gloucester (London) and Regent (Kuala Lumpur) - has aroused investors' attention. The result was roughly a 25 per cent rise of its share price from $2 to $2.50 since last October. The buoyant results for 1993 when net profit rose 84.8 per cent to $149.2 million also shows earlier investment in the Taiwan Hyatt and Singapore is becoming fruitful. Operations in these two countries are expected to perform well for 1993. With contributions from the three hotels, the brokerage expects CDL's net profit to jump 35 per cent to $203 million in 1994.