ANALYSTS are expecting Lippo to record a 59 per cent rise in profit to $336 million for last year. The group, which will announce its results today, is expected to show a two per cent rise in earnings per share to 94 cents and a 33 per cent increase in dividend to 32 cents, according to the Estimates Directory. That will give it a price-earnings ratio (PE) of 10.2 times and a dividend yield of 3.4 per cent. The main activities of Lippo are property, corporate finance, fund management, securities and investment. It also provides banking and insurance services. It is a fledgling conglomerate whose aim is to become a major player in China property, infrastructure and banking. Most of the group's China property developments are in the early stage, but the group is expected to see high profit growth when its projects are ready. The company was set up as a Hong Kong and China investment and holding vehicle for Indonesia's Riady family nearly three years ago. Since then it has expanded to include commercial and investment banking, and property investment and development. The company is also involved in major infrastructure projects and encompasses five listed vehicles. Apart from the Riady controlling stake, the group boasts of a formidable array of powerful shareholders and joint-venture partners from Hong Kong and China. They include Cheung Kong (Holdings), China Resources and China Travel Service. Rental income and commercial banking are expected to generate 30 to 35 per cent of group operating profits up to 1997. The remaining earnings will come from trading in prime Hong Kong properties. Lippo has an impressive portfolio of commercial developments, including sites in Wanfujing and Fuzhou. A 15 sq km site at Meizhou Bay, Fujian province, is being developed for tourism. About 500,000 Taiwanese visit the area each year. To date, the financial commitment to China projects is about $1 billion. Analysts say the group's main problem is that too many projects are in the early stage and China's planned property tax could dilute profits. In the past month, Lippo's share price has risen by 12 per cent. It closed yesterday at $9.40. A subsidiary, Hongkong China, is engaged in several prime commercial and residential developments in the territory, including China Harbour View Hotel, in which it has a 15 per cent stake. It is also involved in two joint-venture office developments in Wan Chai. Hongkong China also announces it annual results today. Daiwa Securities has forecast Hongkong China's profit to leap 296 per cent to $430 million. Earnings per share are expected to rise 273 per cent to 46 cents and dividend to improve 60 per cent to 16 cents. That will give it a historical PE of 8.5 times and dividend yield of four per cent, based on yesterday's closing price of $3.95. In the past month, the company's share price has risen about 25 per cent. Daiwa analyst Anthony Teoh expects the sale of six storeys of Lippo Centre to contribute $220 million to group profit, with rental income producing $145 million. ''It is a property play in both Hong Kong and China. It is undervalued. The market hasn't realised its potential yet,'' said Mr Teoh. He forecast Lippo's profit this year to rise at least 150 per cent to $1.1 billion, including the $700 million from the sale of Ambassador Hotel. ''Profits for 1994 and 1995 shouldn't be bad, judging from the transactions and projects already announced,'' he said. ''Beyond that, it will depend on the China property market,'' he added. ''But the long-term yield on the mainland should be good.''