What the broker says

Wharf (Holdings), through its subsidiaries, develops and invests in real estate properties.

The firm also owns and manages hotels, and operates terminals and warehouses.

Wharf also operates cable television and Internet-related businesses.

Merrill Lynch has placed a long-term 'accumulate' recommendation on the stock, saying it sees more upside for the firm, despite it having dropped to HK$15.95 on Friday from around HK$23 in October last year.

It has put a price target of HK$23 for August 31, 2001.

One of the reasons for Merrill's enthusiasm for Wharf is the potential for income growth due to expected surging rental prices in the next few years.