Big cash balance gives Shui On strong foundation for growth

Shui On Construction and Materials Recommendation: Buy Brokerage: Pacific Challenge SHUI ON provides basic construction materials, including ready-mix concrete, mortars and cement.

Pacific Challenge has placed a buy on the stock after the company announced better than expected annual results last week, with operating profit rising 42 per cent to $514 million and net profit by 30 per cent to $408 million.

Shui On has a $720 million cash balance, which puts it in a stronger position than its competitors in terms of winning government tenders.

Wheelock & Co Recommendation: Buy Brokerage: ABN Amro Asia WHEELOCK'S principal activities include property investment and development, telecommunications and container-terminal services.

ABN Amro Asia has put a buy recommendation on the stock, with a target price of $14.40, saying that the counter offers a cheaper way to gain exposure to Wharf, which has risen strongly in recent months.

The brokerage believes that the privatisation of Lane Crawford is the first part of a bigger restructuring that should enhance the value of the company.