TEE International Limited (TEE)

TEE International Limited (TEE) has announced three property acquisitions since 23 August 2012 thus adding an estimated S$203.5m of total gross development value (GDV) to its pipeline. Assuming 15% - 20% profit margin, the potential profit attributable to TEE from these projects will be an estimated S$16m – S$ 21m. Prior to the 3 property acquisitions, TEE had also restructured its key management team through internal promotion and external hiring. The new management structure allows separate divisional managers to focus on managing and developing TEE’s business in individual market. Following a series of corporate actions, we are of the view that TEE is now well positioned to execute its two-pronged strategy and grow its business footprint while not losing management focus with its larger and stronger management team. Maintain Increase Exposure with an intrinsic value of S$0.45 per share.