Tee Int’l

Tee Int’l: announces 3 new orders of $30.4m, 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 projects range from 1Q13 to end 3Q13. The contracts bring Tee’s order book to $299.5m, vs its FYMay12 revenue at $144m. Recent newsflow on the co has been forthcoming. OCBC yday raised its TP to $0.34 from $0.28, although it kept its Hold rating. Notes Tee plans to spin of its real estate business and list it separately on SGX. The co has stressed that it intends to retain a 70-75% stake in the business and not to cash out of a valuable source of future earnings for the group. Tee 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. The real estate business accounted for 56% ($135m) of the group’s FY12 total assets, 8% ($12m) of revenue, and 22% ($4.8m) of operating profit. The stock is +1.6% at $0.32.