R&F Properties

Stock code: 2777.HK

Last close: HK$7.60

Sell: HK$8.50

By Castor Pang

Nanjing government's 20 policies to offer subsidies to home buyers have stimulated expectations among investors that the central government will continue drafting new preferential policies to revitalize the property sector, a move which has largely driven the rebound of property plays.

However, the government's subsidy program has only a limited attraction, and in addition, there are no signs that the central government is likely to decrease mortgage rates.

As such, these factors are likely to continue clouding the sector.

R&F Properties is a company with a debt ratio of up to 157.62 percent, and its business is mainly concentrated in just a few cities like Beijing.

Its outlook is bleak, so investors are advised to sell when it rebounds.

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

China Resources Enterprise

Stock code: 0291.HK

Last close: HK$19.40

Target: HK$22.60

Support: HK$18.58

By Lai Wai-shing

China Resources Enterprise saw earnings attributable to shareholders reach HK$1.49 billion, down by 60.2 percent year-on-year.

During the same period last year, the company saw a growth of 195 percent, but excluding some special items, the growth was only 17.4 percent. The group's core business saw stable development during the first half.

Benefited from mainland economic growth, its retail business saw earnings reach HK$382 million, up 39.9 percent year-on-year.

The company's beverage business saw turnover jump to HK$8.18 billion, up 29.9 percent year-on-year; its food processing and sales business saw turnover reach HK$240 million; its textile business's earnings were HK$66 million and its investment properties' earnings were HK$566 million.

The author is a senior independent commentator.

Sinolink Worldwide Holdings

Stock code: 1168.HK

Last close: HK$0.76

By Cho Fook Tat

Allowing for a reasonable 30 percent discount to NAV (net asset value), we maintain our "Buy" call on the counter with a revised target price of HK$1.50.

The pre-sale of the Sinolink Garden Phase V (The Seasons) residential flats commenced in June. Up to the end of August, about one-third of the project comprising 291 units with a total gross floor area (GFA) of 43,900 sq m have been sold for 1.06 billion yuan.

Based on the achieved average selling price of 24,200 yuan per square meter, we estimate the development margin at about 40 percent.

The development profit should be booked in the second half of 2008 upon the issue of the occupation permit in the fourth quarter of 2008.

In Shanghai, the Bund redevelopment project, Rock Bund, which will provide a total GFA of 94,000 sq m, is targeted for completion ahead of the 2010 Shanghai World Expo.

Sinolink is in a liquid financial position as net cash mounted up to HK$1.1 billion (HK$0.33/share) as at the end of the first half of 2008.

The sale of the remaining units at MWC and The Seasons should add HK$7 billion to its cash coffers.

After purchasing a residential site located in Shanghai's Changning district for a total consideration of 328 million yuan in August, Sinolink should be able to seize even better acquisition opportunities as cash-rich developers have the upper hand under current market conditions.

An affiliated company(ies) of Taifook Research Limited has, presently or within the last 12 months, an investment banking relationship with the listed corporation herein covered.

The author is an analyst with Taifook Securities.

BYD

Stock code: 1211.HK

Last close: HK$13.78

Sell: above HK$15

Enter: HK$12

By Patrick Shum

BYD is engaged in rechargeable batteries and mobile phone parts production.

It has made great efforts to develop auto business, and taken electricity-powered auto as its core business in recent years.

With environmental protection being attached greater importance in the world, electricity-powered auto is likely to become a mainstream product in the sector.

Buffett's capital injection is based on its foresight on the market and has triggered its stock price to jump.

However, electricity-powered auto is not quite preferred in the market, so the stock price will drop.

Buffett's investment is deemed to be a long-term one, and he will hold the stock for more than 10 years.

Small investors are advised to sell when it jumps above HK$15 and enter again when it dips below HK$12.

The author is executive director at Karl Thomson Investments Consultants Limited.

China South Locomotive

Stock code: 1766.HK

Last close: HK$3.10

Target: HK$3.50

Resistance: HK$3.22

Hold: above HK$2.68

By Dickie Wong

China South Locomotive is mainland's largest rail transportation facilities producer with a total of 50 percent market share.

During the 11th-Five Year Plan period (2006-10), the mainland will invest a total of 220 billion yuan in renovation and the purchase of rail locomotives.

The group saw earnings jump by 150 percent to 809 million yuan during the first half. Its revenue also touched 14.7 billion yuan, up 17.47 percent year-on-year.

In terms of technical analysis, the stock hit a high of HK$3.22 on Sept 2 after its initial public offering on Aug 21, and then it dipped to HK$2.49.

But it stopped loss and began rebounding to above its 10-day moving average recently.

Investors are advised to enter at HK$2.90 with resistance at HK$3.22. Its long-term target will be HK$3.50 and it is wise to hold if it doesn't dip below HK$2.68.

The author is director of Friedmann Pacific Investment Holdings Limited.

(HK Edition 10/04/2008 page2)