Buy Xinao Gas Holdings UBS Warburg has reiterated its HK$3.44 price target for the private chip after the company announced it had struck a joint-venture deal to supply gas to Shijiazhuang in Hebei province, an important pharmaceutical and textile base. Xinao will take a 70 per cent stake in the 220 million yuan (about HK$206.47 million) venture. With its large industrial base, the city will help Xinao improve its recurring income from gas supplies as opposed to its other main source of revenue from connection fees. Buy I-Cable Communications Merrill Lynch has reduced its earnings forecasts for the cable-television operator by 18 per cent to reflect increased competition in the broadband Internet services sector. It has also trimmed its share price target to $3.30 from $3.65. Merrill estimates i-Cable's net profit will rise to $210 million for last year from $168 million in 2001. Merrill recommends buying the share, despite the lower earnings estimate. Television Broadcasts is close to securing a new strategic partner for its pay-television venture Galaxy but it is unlikely to be a serious threat to i-Cable. I-Cable trades at an undemanding valuation of 17.7 times estimated 2003 earnings and unlike its media rivals, it is profitable. Outperform China Resources Enterprise Credit Suisse First Boston has cut earnings estimates and its share price target for the conglomerate but still recommends the share as top-line growth remains impressive. CSFB cut its target price to $10 from $10.67. The new target still offers about 40 per cent potential upside from present levels. CSFB cut earnings forecasts by about 6 per cent for each of 2002, 2003 and 2004 to reflect lower than expected earnings from the retail business due to high start-up costs from aggressive store expansion.