TEE Int’l

TEE Int’l: Sias notes 2QFYMay12 results were in line with its expectations.
2Q revenue declined 42.4% yoy to $38.7m, as last yr’s revenue was boosted by several large scale projects that were close to completion.
Net profit fell by a lower 8.1% to $3.6m, helped by better lower cost of sales, higher operating income and association contribution.

Sias notes the integrated real estate segment has yet to contribute to the P&L for this fiscal YTD, and expects the bulk of the existing projects’ milestones to be met by 4QFY12. Adds, despite headwinds from the property sector, TEE’s project s have been selling well, which provides much comfort to its forecasts and earnings visibility.
TEE declared interim div of 0.6cts, 20% more than the same quarter last year. Sias estimates FY12E div of 2.5cts, which translates to a yield of 10.4% based on last traded at $0.245.
Meanwhile, over the past 3 mths, CEO Mr Phua Chian Kin has made open mkt purchases of ~1.7% interest, raising his direct and deemed stake to 56.2%.
Sias maintains its Overweight rating, with TP $0.45.