Tee International

Tee International - Latest buzz surround the stock is probably due to its recent eligibility-to-list its real-estate business (Tee Land) from SGX, , upon conditions as follows- 1) at least $20m raised in total from public/ private investors from its listing; 2) the price/share of Tee Land, has to be at least $0.50, with a market cap of at least $150m; Upon a spinoff, Tee International will be able to realize the value of their properties, which the Group intends to fund its Myanmar cement business, as well as a special dividend for the remaining proceeds. Tee Int'l has intentions to hold at least 70% stake in Tee Land, which it sees as a valuable source of future earnings. Tee International's historical dps of 2.35¢ (including special div which Tee has been giving the past 2 years) gives an implied yield of 6.0% dividend (using the current price of $0.390), relative to its engineering/ construction peers (average yield of ~2%), or property developer peer Sim Lian with a historical yield 5.8%. On its Myanmar cement business, Tee Int'l last signed an MOU (9 Nov 2012) with Ayeyarwaddy Cement- a subsidiary of A1 Group, to set up a JV-company to develop and operate a fully integrated cement plant to manufacture portland cement for sale in Myanmar. Expected completion of the JV to be formed by 31 Jul 2013. There is no SOTP done on the counter yet, although would not be surprised if markets begin to price in a higher STOP on back of a successful spin off on Tee Land