Playmates chairman Thomas Chan Chun-hoo said the initial response to the new-generation Turtles, priced at less than US$10 each, was encouraging.

Mr Chan said it was too early to estimate what impact Turtles Donatello, Leonardo, Raphael and Michaelangelo would have on the toy scene.

However, the stock market obviously loves a bit of rekindled romance and investors are speculating that the little green action figures will again cut a dash with the buying public.

Playmates shares are up 163 per cent since the beginning of the year, closing at HK$0.59 on Friday.

Tung Tai Securities associate director Kenny Tang Sing-hing, however, did not believe Playmates can repeat its success of the late 1980s.

He said the Turtles faced a tough economic environment and fierce competition from other popular toy figures, such as the Power Rangers.

Analysts said it was also difficult for toy companies to rely on one product as the life cycle of successful products shortened as children became more sophisticated in their demands.

But the company will be heartened by news that the United States Toy Industry Association in January included the original Turtles on its list of the 100 most memorable and creative toys of the past century.

'The timing is right for a re-launch,' Mr Chan said. 'First, there is a limited supply of action-figure toys in the market.

'Second, I believe the market is now back to basics, which means that the appetite for simple action-figure toys is growing.'

Playmates executive director Sidney To said the company would start reaping solid profits when sales of the new Turtles reached HK$100 million.

The target is small compared with the sales achieved last time Teenage Mutant Ninja Turtles flexed their muscles on TV and in toy shops.

Playmates won the licence in the 1980s to make and sell the toy-Turtle action figures, which were based on comic-book characters created by Americans Peter Laird and Kevin Eastman.

Thanks to millions spent making TV cartoons, Playmates became famous and rich. Profits hit a record HK$1.22 billion in 1990 against HK$166.7 million the year before. As a result, Playmates also became a darling of the share market, with its share price surging about 800 per cent at the time.

Like other trendy products, the Turtles lost their lustre after a few years. In 2001, Playmates posted a net loss of HK$86.79 million, though last year it returned a profit of HK$1.27 million.

Mr Chan said customers now placed smaller orders and delivery lead times were shorter in the face of the unclear economic outlook.

Apart from the Turtles, Playmates this year will also spend about US$10 million to launch several product lines including micro cars under its own Speedeez brand and figures based on baseball and basketball stars under the Pro-Zone brand.

A SERIOUS GAME

Playmates Holdings plans to spend US$10 million promoting a relaunch of its famous action-figure toys in a gamble on a repeat of their success of the late 1980s

Investors are backing the gamble, with the company's shares up 163 per cent this year

Analysts warn of fierce competition and a shorter life cycle for successful toys as children become more sophisticated