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.