Tian An China Recommendation: Buy Brokerage: Smith New Court Tian An China is a mainland-based company, with core interests in property development in southern China.
The property market in the country has responded positively to the easing of the government's austerity programme during the last quarter. If this continues, property prices could surge again. Companies such as Tian An - which has an excellent portfolio of properties - would be the first to benefit.
Net profit is expected to reach $194.8 million for financial 1993 and $239.6 million for 1994. These figures are based on conservative sales projections for each project.
With a 24 per cent discount to net asset value, coupled with an anticipated reduction in price earnings, from 18.3 times in 1993 to 12.2 times in 1995, investors are recommended to buy before the mainland property market takes off again. Le Saunda Recommendation: Buy Brokerage: Smith New Court Le Saunda has earned a reputation in China and Singapore on the back of its popularity in Hong Kong, due to its strong brand recognition.
The group will continue to focus on the mainland, where growth will be supported by an increase in the number of outlets, which will rise to 40 by the end of February next year.
The group's strategy is to continue expanding through department-store counters and duty free shops rather than speciality stores. This provides rapid coverage without increasing capital expenditure.