Goldman lifts SHKP out of family saga doldrums There is no risk-free property investment in Hong Kong, but there is a risk-free property play, according to Goldman Sachs. Sun Hung Kai Properties yesterday staged the strongest rebound since the Kwok family saga emerged, with its shares rising 3.59 per cent to HK$118.40, thanks to Goldman's advice. How that works is simple. Investors sell Sun Hung Kai Properties puts at HK$105 and receive a HK$20 premium, then use that in turn to buy Sun Hung Kai Properties calls at HK$128. Assuming Hong Kong's biggest landlord will reach Goldman's target price of HK$148.30 in the next 12 months, investors could make a profit of HK$20 per share. Of course, the United States brokerage did not tell investors they might lose HK$20 per share if the share price falls below HK$105 in the coming year. But Goldman believes the counter has limited downside, noting it was traded some 30 per cent below its net asset value, against the five-year average of 2.2 per cent, and severely underperforming the MSCI Hong Kong index. It may be a fair and impartial call, given Goldman is the only major investment bank that has not been tempted to move from Cheung Kong Center in Central to Sun Hung Kai Properties' International Commerce Centre in Kowloon station. Oil price warms Husky chief The surging oil price has at least benefited a home-grown executive working for Li Ka-shing. Husky Energy chief executive John Lau Chin-sung last year beat Hutchison Whampoa taipan Canning Fok Kin-ning (who made HK$148 million last year) as highest paid in the Li empire, thanks to the rising value of the underlying stock to which he has options. Mr Lau made C$27.47 million, (HK$210.06 million), a rise of 4.7 times from 2006. His compensation included C$5.55 million in cash payment and C$21 million from his 2.1 million share options exercisable at C$41.66. Husky Energy closed Tuesday at C$50.26. Mr Lau went a long way to get there. When he took Husky's helm in 1993, he was unwelcome at the Canadian oil company, criticised for his lack of technical background and for not making public his biography in his first few months. The rest is history. His fortunes changed dramatically as the price of oil has risen some US$100 per barrel in the past 15 years. He banks BOCHK earner Still with executive rewards, we note that Bank of China (HK) chief executive He Guangbei (left) sold his last batch of exercised options on Black Friday for a handsome profit. Mr He cashed out HK$2.02 million, selling 100,000 shares at between HK$20.10 and HK$20.30. He exercised his 361,500 options last August at the bank's listing price of HK$8.50. Last September he sold 261,500 shares at between HK$18.60 and HK$18.74. Altogether he netted HK$3.8 million. Audacious audit Tse Sui Luen Jewellery's founding chairman Tse Sui-luen is in jail. His son and one-time chairman Tommy Tse Tat-fung is also in jail. The fraud-prone family jewellery business needs to put certain things behind it and get back on track. Announcing a 78.7 per cent increase in profit to HK$99.2 million last year, new chairwoman Annie Yau On-yee, wife of Tommy Tse, and new chief executive Erwin Steve Huang showed reporters their determination to succeed in a presentation that can be summarised in three words: Audit! Audit! Audit! There is still a long way to go. One obvious suggestion would be to change the company name, as no other executive of a Hong Kong-listed firm - whose company is eponymously named - is serving a jail term. Dressing down You don't see many rich and famous Hongkongers going to the Hong Kong Club in Levi's. Or do you? We note with interest that the just released Hong Kong Club dress code now allows casual wear including shorts and sports shoes at the Bowling Alley Bar. As for jeans, one may wear them only after 6pm from Monday to Friday, and whole day on Saturday, Sunday and public holidays.