Shui On Construction and Materials deals mainly in construction and contracting, renovation and the fitting out of buildings. Shui On last week posted a net loss of HK$17 million for the six months to September, reflecting the depressed construction and property sectors. In a recent report, KGI Asia said the group's turnover of its core construction and building maintenance division declined 42 per cent to HK$833 million, while its pre-tax contribution also fell 59 per cent to HK$27 million. 'Looking ahead, as the government intends to cut the supply of public housing and freeze the land supply for private housing, we expect that further pressure will be seen on Shui On's construction business in the coming six to 12 months,' it said. KGI said it expected Shui On to suffer a larger loss in the second half of next year, while the lack of a dividend payment in its interim results would discourage investors. KGI recommended a 'reduce' stance on the counter. Graphic: now15gwz