Oriental Press Recommendation: Buy Brokerage: Smith New Court Oriental Press is set to post dramatically improved results, largely due to improved margins at Oriental Daily, Hongkong's leading Chinese language newspaper, with a market share of 50 per cent and readership of 1.7 million. The company is expecting a further improvement in margins for next year, partly due to continued strong advertising demand and improved operational efficiency with the upgrading of facilities. Further moves into property investment may raise eyebrows, but show an increased awareness that the company's balance sheet strength was not being well utilised. The company's strong operational cash flow permits a high dividend payout policy, and the stock offers considerable attraction as yield play. World Houseware Ltd Recommendation: Buy Brokerage: G K Goh World Houseware's main operations are the manufacturing of low-end place-mats, coasters, pot-holders, oven mittens, shower curtains and PVC tablecloths for export. This is a very defensive and recession proof industry. The group's products are at the low end of the product range. The company's shower curtains, for example, typically have a retail price of only US$1.69 (about HK$13) making them very resilient, even during periods of economic weakness overseas. To cut costs and improve profit margins, World Houseware has been becoming more vertically integrated. The manufacturing process now includes PVC sheet printing, which is responsible for the sharp increase in profit margins for the 1993 financial year. The next stage of vertical integration is to manufacture PVC sheets and foam, which is expected to increase profit margins further. By integrating upstream, the group is also diversifying - becoming a supplier of intermediate products and services to others involved in similar lines of manufacturing. With good earnings growth potential, trading on a prospective price earnings ratio of 6.1 times and yielding 7.3 per cent, World Houseware is a bargain.