Market: Singapore Company: Sunright Recommendation: Buy Brokerage: Schroders STRONG growth in the semiconductor industry, fuelled by high demand for computers and consumer electronics, augurs well for Sunright. The largest independent burn-in and test service provider for the world's major semiconductor manufacturers, with plants in the United States, Singapore, Taiwan and Malaysia, the company enjoys a key partnership with Rood Testhous, the largest test house in Europe. As testing and burn-in services form only a small part of the cost of computer chip manufacturing, margins are expected to remain stable. The stock may be re-rated upwards nearer to the 1996 financial year based on the strong growth from its testing operations. Market: Malaysia Company: Hume Industries Recommendation: Buy Brokerage: Smith New Court A SLOWDOWN in Hume's core business - construction materials supply - was reflected in the company's 1994 net profit figures of M$62.3 million (about HK$188 million), compared with $68.8 million in 1993. Strong forecast earnings growth of 72 per cent in the 1995 financial year and 32 per cent in 1996 is largely attributable to healthy construction activity. With the brokerage's medium-term outlook anchored by a construction boom and the globalisation of its subsidiary OYL, the company's price-earnings ratio (P/E) carries premium weighting for its above-average potential and management's high-calibre performance. Market: Singapore Company: Creative Technology Recommendation: Long-term buy Brokerage: Smith New Court CREATIVE'S sound-card successes made it a world leader in multimedia computing. However, the sound-card industry is maturing and growth is shifting to other products. Heavy demand is becoming a thing of the past and potential oversupply could lead to unsold inventory during the Christmas period. Strong growth will resume only in the 1996 financial year when the P/E is expected to reach 11.5 times on 27.6 per cent earnings-per-share growth. The stock is fully valued in the short term but the long-term outlook is positive. Market: Malaysia Company: Hong Leong Bank Recommendation: Buy Brokerage: Schroders GIVEN the Hong Leong Group's success in making Dao Heng one of the top five banks in Hong Kong, the brokerage believes the newly listed Hong Leong Bank (HLB) can be a top-tier bank in Malaysia. The brokerage believes fair value for the stock is M$8.00 per share, giving it a 10 per cent premium to the sector for its Hong Leong connection. This would put the stock at prospective P/Es of 25 times and 20.5 times for the 1996 and 1997 financial years respectively. Market: Taiwan Company: UMC Recommendation: Hold Brokerage: S. G. Warburg UNITED Microelectronics Corp (UMC) is the country's second largest integrated circuit manufacturer. The shortage of integrated circuits is expected to continue, fuelling strong demand for UMC's products. The stock has appreciated more than 300 per cent over the past 12 months but the company's output is close to its design limit. Over the next two years it will be able to achieve an additional 20 per cent volume increase compared to 55 per cent growth in 1993 and forecast 45 per cent growth in 1994.