BUY
Midland Realty (Holdings) Daiwa Institute of Research has maintained its 'outperform' rating due to the counter's attractive valuation. The property agency's share price has slipped 15 per cent after having doubled since January. '[The fall] was caused by profit taking rather than changes in [its] fundamentals. We think it is time to look at Midland Realty again,' said analysts Natalie Chow and Jonas Kan. They said Midland could benefit from an industry consolidation and an improved residential sector outlook. A $2.10 price target has been set for the stock and they expect a re-entry price of $1.68.
HOLD
Texwinca Holdings Nomura International has kept its 'neutral' position but has cut earnings estimates on the knitted fabric maker by 5.9 per cent for next year and 4.1 per cent for 2005 to reflect rising output costs caused by higher cotton prices and a cut in the value-added tax rebate on raw materials sourced in China. For the first 10 months, global cotton prices had risen 35 per cent, making it hard for Texwinca to pass on the cost to customers, said analyst Phoebe Wong. Shares are unappealing at 12.5 times next year's earnings. She has a $5.45 target on the stock.
BUY
Clear Media ICEA Securities has reiterated its 'accumulate' call, citing a promising earnings outlook for the mainland outdoor advertising company. Given its strong presence in China and hopes of higher advertising rates next year, analyst Alice Leung projects a 24 per cent average growth in earnings per share. 'With higher earnings visibility to come in the first quarter of next year, we foresee more upside,' Ms Leung said. Trading at 24 times next year earnings, the stock did not seem overvalued, she said.
