China Eastern Airlines

Stock code: 0670.HK

Last close: HK$1.01

Sell: HK$1

By Castor Pang

The parent company of China Eastern Airlines (CEA) has injected 3 billion yuan into CEA, a move which sent its stock price soaring by 50 percent.

Although the capital injection has decreased its debt ratio and interest expenses, the company's debt remains relatively high, which in turn means that strong concerns over its stock price still exist.

In addition, market observers expect further restructuring of the mainland airline sector, following executive board reshuffles at three of the mainland's top airline companies.

And, with the mainland economy slowing, the demand for air transportation is expected to decline.

Therfore, investors are advised to sell amid the recent rebound.

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

Jiangxi Cooper

Stock code: 0358.HK

Last close: HK$5.53

Target: HK$6.49

Support: HK$5.19

By Lai Wai-shing

Cooper enterprises have been affected by global copper price decline in the third quarter. Jiangxi Cooper's profi ts during the third quarter reached 919.5 million yuan, down 26.9 percent, year-on-year.

The group's first three quarters saw accumulated profits hit 3.699 billion yuan, up 13.18 percent, year-on-year.

Its turnover hit 41.54 billion yuan during the first three quarters, up45.46 percent, year-on-year.

This could be attributable to the price hikes in copper, gold and sulfuric acid during the first half and the completion of a new project.

Its total business tax during the period was 179 million yuan, up 149.98 percent, year-on-year.

Its income tax reached 1.274 bi l l ion yuan, up 113.96 percent, year-onyear.

The company has made a series of efforts in cost control.

The author is a senior independent commentator.

(HK Edition 12/16/2008 page3)