Dah Sing Financial Recommendation: Buy Brokerage: Smith New Court DAH Sing Financial has a 53-branch network of heavy retail banking involvement but this has not been translated into group operating profit. The bank has built a large property mortgage book (estimated at 45 per cent of total profits) in isolation from its retail network. With trade finance perhaps the most competitive banking product, the challenge for Dah Sing Financial is to develop alternative profit sources while capping costs. It believes retail is the way forward, using its branch base to offer enhanced personal banking services. Herald International Recommendation: Buy Brokerage: Smith New Court SLOWER-than-expected sales of one of Herald's major product lines, Jurassic Park action figures, during the second half of the 1993-94 financial year have made the brokerage downgrade its 1994 and 1995 earnings forecasts. However, the stock is still recommended, given the group's solid fundamentals. Toy sales were weaker in the second half of 1993-94, although full-year toy sales growth and sales of computer heads were encouraging. Lai Sun Garment Recommendation: Hold Brokerage: Smith New Court THERE was little excitement from the interim results, with a 41 per cent increase in the bottom line to $503 million due mainly to a boost from strong property profits. Orders for the core manufacturing business were flat and the outlook for the second half of 1994 remains gloomy with the recent surge in cotton prices. Earnings for 1993-94 are forecast to be $800 million but management concerns and a harsh environment make Lai Sun a hold. Hutchison Whampoa Recommendation: Buy Brokerage: Sun Hung Kai Securities HUTCHISON is lobbying for the joint redevelopment of the Hilton Hotel and the nearby government car park and Beaconsfield House. The combined site could double the existing 37,000-square-feet Hilton site and could be redeveloped into a large commercial complex. The $1 billion paid for terminating the Hilton Hotel management contract will prove worthwhile if such a massive project goes ahead. Lai Sun Development Recommendation: Buy Brokerage: Smith New Court GOOD results stemmed mainly from the sale of the 37 Repulse Bay Road development. The bulk of profits will be booked this year and, together with the Mongkok and Yuen Long projects, it should generate a $625 million pre-tax development profit. A diversified investment-property portfolio continues to generate strong rental income which is expected to form about 42 per cent of this year's pre-tax profit. Property trading should boost profits by $130 million.