Market: Malaysia Company: Tongkah Holding Recommendation: Buy Brokerage: Smith New Court HAVING established its key supporting industries in contract manufacturing, precision tooling and plastic-injection moulding, Tongkah is moving into end-product assembly. The proposed acquisition of precision-engineering company Polytool is part of management's aim to improve its manufacturing base. The 65 million ringgit (about HK$197 million) acquisition is expected to be completed by December, boosting earnings per share to 16.3 sen and 19.7 sen for the 1994 and 1995 financial years respectively. Attractive growth-to-price-earnings ratings of 2.6 times and 0.9 times for 1995 and 1996 respectively make the stock a buy. Market: Singapore Company: Vikay Industrial Recommendation: Hold Brokerage: Smith New Court VIKAY'S 1994 net interim profits of S$1.2 million (about HK$6.23 million) were below market expectations. The company's liquid crystal display (LCD) operations in Malaysia were scaled down and transferred to China, which led to a drastic drop in output in the first four months of this year. The small LCD market, in which Vikay is a major player, should grow 25 per cent annually in volume, but value growth will be much lower with severe pricing pressures. At a revised prospective 1994 price-earnings ratio (P/E) of 28 times, the stock is fully valued. Market: South Korea Company: Goldstar Recommendation: Buy Brokerage: Schroders GOLDSTAR posted a strong 1994 first half interim net profit of 79.2 billion won (about HK$748 million) for a year-on-year increase of 161.5 per cent. Through strategic alliances with leading companies, the company is planning its entry into a range of multimedia technologies. Based on consolidated earnings, Goldstar trades at a 48 per cent discount to the market and 30 per cent discount to comparable domestic stocks. The company's strong earnings - present and future - have not been fully reflected in the share price, but the mandatory reporting of consolidated financial statements this year should highlight the undervaluation of Goldstar shares. Market: Singapore Company: Teledata Recommendation: Sell Brokerage: Schroders TELEDATA is one of three consortiums bidding to provide Singapore's central business district with an electronic road pricing system by 1997. The tenders submitted so far range from S$193 million (about HK$1.01 billion) to about $260 million, with Teledata submitting the lowest tender price. The company's share price has risen considerably since its flotation and is trading at a 50 per cent premium to the market. The upside is already limited even if Teledata is awarded the contract, but there is potential for a 50 per cent downside if the project goes elsewhere. Market: Taiwan Company: MTI Recommendation: Reduce Brokerage: S. G. Warburg MTI started as a microwave-related communications designer and gradually moved into telecommunications system manufacturing, including satellite and microwave radio equipment.