Hang Lung Development Recommendation: Buy Brokerage: Smith New Court HANG Lung is comfortably positioned for growth in the coming years. It derives 40 per cent of its earnings from a growing recurrent contribution from the Amoy and Grand subsidiaries, while developing more land in Hongkong and China. Being small enables Hang Lung to achieve the right mix of properties in Hongkong and China quicker than its competitors. Profits are expected to grow by 22 per cent per annum for the next two years based on its prevailing market price for its properties. Amoy (51 per cent owned) and Grand (60 per cent owned) provide stable recurrent income and an exposure to the recovering office and hotel sectors. Hongkong Land Holdings Recommendation: Buy Brokerage: G. K. Goh PROFITS for 1992 were much in line with forecasts. While net rental income declined slightly, and administrative charges increased in line with inflation, net profits increased by 2.3 per cent as a result of a 50.3 per cent fall in financing charges. Earnings per share grew slightly to $0.91 and dividends were raised by 5.6 per cent to $0.74. Net asset value per share increased by 18.2 per cent to $15.21 at the end of the year. At year-end the group's property portfolio was 97.5 per cent let, while actual average rents were $47.45 for office space and $102.72 for retail space compared with $47.9 and $80.3 in 1991. The office property market in Hongkong is now well into the upward phase of the cycle. However, current market rentals are still below those achieved for most of 1990. As a result there will be little if any reversionary rental increases for Hongkong Land in 1993. The group will benefit from the sale of 9 Queen's Road Central, due to be transacted in June, which will realise an extraordinary profit of $1,656 million. The group has already received non-refundable cash deposits of $1,915 million.