Hard work may counter portent of tricky times
Larry Yung Chi-kin Chairman Citic Pacific Sign: Snake THE beginning of the year looks set to be rocky for Larry Yung Chi-kin, despite some early successes.
Continued success will hinge upon Mr Yung working hard and maintaining the good will of investors. Half-hearted attempts to allay investor fears, or avoiding difficult questions, will result in setbacks.
This is especially likely in February, when Citic share prices could face a period of weakness. This is not the year for Citic to make large, risky investments.
Mr Yung will reap little profit from personal investment speculation - perhaps including the sale of his recently-acquired Citic shares.
He should keep a sharp eye on work safety, as problems with the Western Harbour Crossing could cause big losses in May or October.
The second half of the year will be far better than the first, and investors are recommended to only then focus their attention on Citic.
Jardine Matheson Conglomerate Sign: Dragon (born 1832) THE new year will bring a slight reprieve from the hong's string of poor fortune.
Although no noticeable change in management style will occur, things will go considerably better this year. Both core businesses and riskier side ventures will garner decent returns. However, the company may have difficulty getting its principal back on new investments, and a new project might turn out to be extraordinarily difficult to manage.
Subsidiary Hongkong Land will be the best of the group, startling investors at government land auctions and completing a large (possibly redevelopment) deal in Central. Any real estate deals transacted this year will be very profitable for the group.
Investor relations - the closest thing a company gets to a love life - will continue to be rocky, and the company must work hard to maintain the goodwill it begins to get in 1997.
Gordon Wu, Managing Director, Hopewell Holdings Sign: Pig THE Pig has possibly the worst forecast out of all animals.
Both Hopewell's core earnings and its speculative projects will disappoint this year, leaving Gordon Wu with little choice but to tough the year out amidst the slings and arrows of outraged fund managers.
The good news is that by the end of the year the dire situation will have ameliorated and Hopewell's business outlook will have improved considerably.
This is not a good year for Mr Wu to embark upon new investments: any improvement in his business must come from sorting out his present ventures. Mr Wu will also face considerable personal difficulties in 1997 due to difficulties in his business forcing him to reduce his social profile.
Dipping into savings to finance conspicuous consumption, although it will allow Mr Wu to maintain face, will cause serious trouble. Source: Credit Lyonnais
