A NEW look is on the cards with the merger of Chinese Estates and Evergo, both controlled by the Lau brothers, who are renowned for expanding companies through continuous fund raising. In view of the shareholders' approval of the merger and with net assets of more than $30 billion, Chinese Estates has emerged from being a second-tier property player and is in a better position to expand. The restructuring resulted in a reduction of the Laus' interest from 52.5 per cent to 47.35 per cent. Since then this has increased to about 53 per cent. Brokerage South China Securities strongly believes this will be increased further as the shares are trading on a huge discount to net asset value. According to management, gearing after the merger increased from about 24 per cent to 34 per cent as Chinese Estates assumed all of Evergo's liabilities. Pro forma net borrowing at June 30, 1993, was $4.057 billion, equivalent to 51 per cent of book value of net tangible assets at $7.918 billion or 28 per cent of revalued assets at $14.536 billion. Earnings in 1994 are expected to be significantly boosted by the doubling of rental income. The second phase of ''The In Square'' and the refurbishment programmes at Evergo House, formerly known as Fleet House, will be completed by the end of this year. In view of a strong recurrent income from its quality investment portfolio, the possible sale of non-core properties and proceeds of about $1.1 billion from the conversion of 1993 and 1995 warrants, it is unlikely that a cash call such as a rights issue or a placement will be needed for at least six months. However, after the restructuring the company is prepared for more active expansion, particularly in infrastructure projects in China which may require heavy capital outlay. It is believed a syndicated bank loan is likely to be in the pipeline soon because of its strong asset backing and potential. The company is also known to have been approached by investment bankers to issue convertible bonds and similar products. Management indicated a dividend payout would resume this year. Recurrent income from its renovated and expanded investment portfolio is expected to double in 1994 to more than $1 billion or about $0.60 per share. South China Brokerage has revised Chinese Estates 1994 earnings forecast to $1.275 billion, or nine per cent growth over the previous year; and 1995 earnings to $1.462 billion, representing 15 per cent growth in profit.