TEE International

TEE International: FY13 earnings below street estimates; 4QFY13 earnings dipped 43.9% to $6.4m mainly due to a $4.1m increase in administrative expenses. Tee reported that these expenses were incurred for marketing property development projects and also included administrative expenses for its newly acquired integrated turnkey material handling subsidiary. Subsequently, 4QFY13 revenues soared 124.5% to $88.7m due to the recognition of construction projects from its engineering segment as well as associate TEE Land's recognition of developments. This takes FY13 earnings to $13.1m (-31.7%) and revenues to $216.3m (+50.6%). Group reported a healthy outstanding order book of $215.4m for its engineering segment. Final dividend of 2.5¢ proposed, bringing FY13 dividends to 3.15¢/share implying an attractive yield of 8.75%. Broker recommendations: NRA has OVERWEIGHT with TP of $0.42; SIAS has OVERWEIGHT with TP of $0.47