TEE International

TEE International: On the recent developments for the company, SIAS believe group is looking to develop its infrastructure and recurring income division. The company is likely to evaluate its recent MOUs and carefully select the appropriate projects to go into. Back in November 2012, TEE announced a MOU to develop and operate a fully integrated cement plant in Myanmar. This proposal is undergoing feasibility study now. The company also has three other recurring businesses now, namely Nordam, Rom Klao and GETCO, which generated combined attributable profit of S$3m+ annually. Based on SOTP following the listing of TEE Land, SIAS maintains INCREASE EXPOSURE, with a TP of $0.485 based on a 8.8x P/E for its engineering and infrastructure business. Recent contracts include: i) $49.1m value of projects from established clients such as SMRT, HSBC, Singapore Institute of Technology and others. These new contracts help to boost its engineering order book to $270.1m; ii) TEE’s 49% owned Global Environmental Technology Co., Ltd (GETCO, a waste water treatment company in Thailand) entered into a consortium with Cisco Engineering and Lam Water Solution to manage and control the water level at Makkasan Water Catchment area. The contract is worth approximately S$8.61m with a contract term of three years. TEE’s effective interest is 14.7%; iii) Entered into an MOU with Pioneer Environmental Technology to evaluate the possibility of investing in a waste water treatment plant in Huzhou, China;