Market: Singapore Company: Falmac Limited Recommendation: Buy Brokerage: Schroders Securities Asia FALMAC is a precision maker of high-quality circular knitting machines. After listing in February 1994, the company's price hit a high of S$1.18 (HK$6.11) but the stock has since underperformed, recently closing near its issue price of $0.72.
The brokerage believes this de-rating is unjustified. At the end of the 1994 financial year, Falmac achieved its prospectus forecast.
Its plant in the northern Chinese city of Tianjin was recently finished and will be working in October. Falmac's mainland facilities will boost earnings volume and margins and contribute in the 1996 financial year and beyond. The company's price-earnings ratio is considered too low and the brokerage expects a 50 per cent re-rating, at least.
Market: Singapore Company: Straits Steamship Land Recommendation: Buy Brokerage: Smith New Court THE property arm of the Keppel group has diversified aggressively into regional markets, with a presence in Malaysia, Indonesia, Vietnam, Myanmar, the Philippines and China. The stock is one of the brokerage's preferred proxies for the Singapore office sector. The price is underpinned by a current net asset value of S$4 and an undemanding 1997 estimated net asset value of S$5.33.
Prudent management has produced an impeccable balance sheet and the capacity for future asset acquisition.
Market: Thailand Company: Robinson Department Store Recommendation: Sell Brokerage: S. G. Warburg Research THE company has not been profitable since 1991 and fortunes look unlikely to improve before 1996 due to expansion.
