Bosideng

Stock code: 3998.HK

Last close: HK$1.35

Entry: HK$1.20

Target: HK$1.50

Stop loss: HK$1.10

By Patrick Shum

Bosideng's share price has been falling since its IPO. It has declined to 60 percent of its IPO price.

The company's large inventory is the key reason that damages investor confidence. Its sales slid 6 percent last year, but average sales price jumped 5.3 percent.

This led to its marginal profits grow to 45.6 percent and profits surge to 80.8 percent to 1.116 billion yuan last year.

These show that Bosideng's business performance is not that sluggish as expected.

The company has diversified its business to produce non-down garments.

Investors are advised to enter at HK$1.20 and look forward to HK$1.50. It is wise to stop loss at HK$1.10.

The author is executive director with Karl Thomson Investment Consultants Limited.

Esprit Holdings

Stock code: 0330.HK

Last close: HK$81.60

Entry: HK$81.50

Hold: above HK$76

By Dickie Wong

Esprit Holdings announced that its vice group chairman has resigned and the company made a new appointment.

The company also said two weeks ago that it will increase its holding of stakes - investing HK$197 million to buy back 2.54 million shares.

The company said its net profits jumped 37 percent to HK$3.293 billion during the first half this year.

The impact of the reshuffle of vice chairman is minimal. European market which accounts for half of its business in turnover is expected to see better development.

The brands of H&M and Inditx are expected to see greater outlook.

In terms of technical analysis, the stock price has found a footing at HK$76.2 and began rebounding to its 10-day and 20-day moving averages.

The resistance is around HK$87, and the stock has stood firm above its 50-day moving average.

It is expected to keep good trend during the mid-term period.

It is advised to enter at 20-day moving average at HK$81.50 with a resistance line of HK$85.70.

Investors can look forward to a target at HK$90 and it is wise to hold if it stands above HK$76.

The author is director with Friedmann Pacific Investment Holdings Limited.

China Water Affairs

Stock code: 0855.HK

Last close: HK$1.88

Target: HK$2.56

Support: HK$1.77

By Lai Wai-shing

China Water Affairs' earnings for FY07-08 ending this March hit HK$427 million, a surge of 5.74 percent year-on-year.

Its second-half earnings were HK$216 million, a little higher than HK$211 million made during the first half.

Its urban water supply business, accounting for 31 percent of its total business, saw income reach HK$240 million, 3.31 times of the figure in FY06-07.

Water equipment installment and infrastructure turnover hit HK$400 million, 10 times of previous year's figure.

The company has significantly expanded its business presence and supplied water for some 20 cities and counties on the mainland, generating remarkable returns.

The company's wastewater treatment business is mainly concentrated in the Jinzhou reclaimed water and environmental protection project with business turnover worth HK$26,800, accounting for 3.5 percent of total turnover.

The company's wastewater treatment business is expected to see greater achievement.

The author is a senior independent commentator.

Mengniu Dairy

Stock code: 2319.HK

Last close: HK$23.60

Entry: HK$23

Target: HK$25.60

Stop loss: HK$22.20

By Castor Pang

Despite the impact led by National Development and Reform Commission (NDRC)'s price adjustment on dairy products during the first quarter, Mengniu Dairy has adjusted its products mix, maintained its marginal profit and improved its profits-earning capacity.

Under the new regulations by the NDRC, the threshold to enter the industry has been lifted and some small-sized companies have undergone reshuffle or left the market.

As such, the market supply has shrunk, and Mengniu has gained chances to enhance its market presence.

Since the stock began rebounding in March, it still can't break its resistance of HK$26.

It is predicted that after the company announced the medium-year performance report, the market will expect higher price target for Mengniu.

Investors are advised to enter at HK$23, and look forward to HK$25.80.

It is wise to sell at HK$22.20.

The author is a strategist with Sun Hung Kai Financial Group.

(HK Edition 08/04/2008 page1)