Tee International

Tee International: Results were out 8 Jan 2013. FY12 revenues declined 5.2% y/y to $74.7m, earnings declined 10% y/y to $5.3m. On its Engineering division, Group reported that its associates have an outstanding order book of $81.7m in Malaysia and Thailand for its telecommunication engineering and wastewater treatment businesses. Group declared dividend of 0.65¢/ share, books closure date on 8 Mar 2013; indicative dividend yield of 4.7% The last new orders announced by the Group was i) Addition & Alteration works to Plaza Singapura Shopping Center, awarded by CapitaLand; ii) Addition & Ateration works to existing buildings and shophouses at Merchant Road, awarded by Raffles Education; and iii) new erection of a single storey building at Lorong Sesuai, awarded by Mediacorp; Completion dates of the above projects range from 1Q13 to end 3Q13. OCBC previous noted tat Tee plans to spin of its real estate business and list it separately on SGX; rates the Company HOLD and TP of $0.34. House believe Group plans to payout part of the proceeds from the proposed spin off as a special div and use the rest to fund its expansion into new ventures such as the cement business that it is exploring in Myanmar.