Stock Name: Tee Intl
Company Name: TEE INTERNATIONAL LIMITED
OCBC Investment Research in a Nov 16 research report says: "TEE built up its M&E engineering and general construction business over the years with many notable projects, including Marina Bay Sands.
"We like TEE for (1) its track record in the defensive M&E space, (2) its regional footprint providing it with opportunities to win contracts beyond Singapore, and (3) the healthy growth prospects of both its M&E and property development businesses.
"We adopt a SOTP valuation methodology to value TEE - a multiple based approach applied to value its M&E/construction business (5x P/E ratio on FY2012 estimates) and a RNAV approach for its development arm.
"We derive a fair value estimate of 34 cents, implying upside of around 41%. We also like TEE for its decent dividend payout, and based on our EPS estimates, it can potentially offer 5%-7% dividend yield. BUY (initiating coverage).
Company Name: TEE INTERNATIONAL LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 0.34 |
OCBC Investment Research in a Nov 16 research report says: "TEE built up its M&E engineering and general construction business over the years with many notable projects, including Marina Bay Sands.
"We like TEE for (1) its track record in the defensive M&E space, (2) its regional footprint providing it with opportunities to win contracts beyond Singapore, and (3) the healthy growth prospects of both its M&E and property development businesses.
"We adopt a SOTP valuation methodology to value TEE - a multiple based approach applied to value its M&E/construction business (5x P/E ratio on FY2012 estimates) and a RNAV approach for its development arm.
"We derive a fair value estimate of 34 cents, implying upside of around 41%. We also like TEE for its decent dividend payout, and based on our EPS estimates, it can potentially offer 5%-7% dividend yield. BUY (initiating coverage).
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