Peregrine Investment Recommendation: Buy Brokerage: Smith New Court Booming stock markets, strong corporate finance mandates, regional expansion and product diversification are a recipe for rapid earnings growth. Exponential growth over the past few years has strained a previously straightforward Hong Kong equity operation. However, swift remedial action appears to have been taken and earnings impact should be limited. Expansion into fund management via a 24 per cent stake in INVESCO has yielded significant paper profits. But a closer relationship and further Asian expansion probably needs to wait until after resolution of the latest legal action against INVESCO. While stockbroking earnings will always be volatile, Asian markets seem set for continued expansion in interest and investment. Peregrine offers a very direct play on such growth, at a modest current rating and healthy dividend yield. More difficult is ascertaining a sensible rating for such a volatile earnings stream - efforts at broadening the product and geographic mix will continue to help, but the company remains essentially a commission-led broker. Sino Land Recommendation: Buy Brokerage: South China In order to survive in the cyclical property market, Sino Land is expanding its investment property portfolio from the existing 4.5 million square feet to about five million sq ft in 1995. Beyond fiscal 1995, the redevelopment of two existing investment properties will be complete. Annual rental income may well be over $1 billion. The group is also active in replenishing its land bank in government land auctions. High Fashion Recommendation: Buy Brokerage: S. G. Warburg High Fashion is trading at an 18 per cent discount to the market. Operating in a niche area, sales of its high quality silk garments have risen strongly, in defiance of dismal trading conditions in the US and Europe. With strong management, substantial margins and solid earnings growth, it is set to be revalued upwards.