BUY
CNOOC DBS Vickers Securities has maintained its 'buy' rating on the dominant offshore oil producer following a better than expected 6.33 billion yuan (HK$5.93 billion) interim net profit, an increase of 75 per cent against last year, and a higher than expected dividend. Analyst Rachel Tsang raised earnings estimates 8 per cent for this year and 5 per cent for next year to reflect improved cost controls. Ms Tsang said production was expected to rise 6 per cent to 133 million barrels this year on strong oil prices and 15 per cent to 150 million next year. She revised the stock's target price to $15.70 because of decent output growth, the dividend and its undemanding valuation. The stock closed yesterday at $14.55.
HOLD
Li & Fung Lehman Brothers has downgraded to 'equal weight' its rating on the outsourcing agent as it said the share price already reflected the company's growth prospects in the medium term and reasonable expectations from the Levi Strauss deal. Analyst Stephen McKeever said its shares now looked fully valued trading at 25 times next year's expected earnings - above its five-year average. He said the Levi Strauss deal was 'a major positive ... but not transformational'. The counter closed yesterday at $13.70.
HOLD
Glorious Sun Enterprises Kim Eng Securities has maintained its 'hold' rating on the garment maker and retailer following results in line with full-year estimates. The Iraq war and Sars affected the retailer's earnings. Looking ahead, analyst Mavis Hui said that with the US economy expected to pick up in the second half of this year, the firm could expect better export prospects. Glorious Sun is to open five to 10 stores in first-tier cities such as Shanghai by next year. Ms Hui said the firm was sitting on $745 million and was trading on 13.4 times forecast earnings.