Tee International

Tee International: OCBC maintains Hold with $0.30 TP. HOuse note that TEE International recently announced the establishment of two wholly owned indirect subsidiaries, TEE Industrial and TEE Hospitality, under its real estate unit, TEE Land. The principal activity of both subsidiaries will be in real estate development. Though no other details were given, the choice of names suggests that the group is preparing to expand its property business further, into the industrial and hospitality services segments. Meanwhile, TEE’s plans to spin off its real estate business appear to be on track for a listing on SGX by May and expect more updates in the weeks ahead. Its share price should remain supported in the near term by expectations of a special dividend if the plan succeeds, but remain cautious on TEE until see stronger contributions from its real estate business.