Gold Peak Industries Recommendation: Buy Brokerage: Sassoon Securities Total earnings of the Gold Peak Industries group maintained a healthy 26.4 per cent growth, though profits attributable to the parent company were affected by the listing of Clipsal in Singapore.
Gold Peak's stake in Clipsal was reduced to 68.17 per cent after Clipsal's listing in September 1992 and the placement in March last year.
Continued demand for rechargeable batteries fuelled a healthy 18.5 per cent increase in sales for Gold Peak's batteries division in the first half of this year.
But its electronics division was disappointing due to weak export markets and austerity measures in China.
The group is gradually transforming into an Asian enterprise with diversified sources of earnings. The temporary dilution of earnings will be reflected this year but contributions from its subsidiary Gerard and a gradual recovery in export markets will help sustain better earnings per share growth next year.
Cathay Pacific Recommendation: Sell Brokerage: S. G. Warburg Cathay has underperformed the market significantly due to repeated surprises about the toughness of its operating environment.