TEE International

TEE International: 55:45 JV, TEE-HC Engineering, secured a MOP384.5m ($60m) contract for mechanical & electrical (M&E) works from Venetian Cotai, a subsidiary of Sands China, under the Las Vegas Sands Corporation. The works will be for Venetian Cotai's US$2.7b integrated property development in Macau- The Parisian Macao, which consists of 3,000 hotel rooms, retail mall, MICE space, diverse food and beverage options and entertainment, to be scheduled for completion in late 2015. The latest contract brings the group's outstanding order book to $420m. This will be the group's second time working with the world renowned gaming brand, following an earlier M&E project in 2008, for the Marina Bay Sands Integrated Resort in Singapore. TEE recently released a slightly disappointing set of 4QFY14 results, mainly due to the timing of sales recognition for its engineering contracts. Currently, only two brokers cover the stock- both with Buy ratings and mean 12-month TP of $0.30. At $0.265, TEE International trades at 7.2x forward P/E, slightly ahead of M&E peer King Wan of 5.7x.