Tee International (Tee) reported 4QFY14 PATMI of S$2.3m, which dipped 65.1% YoY due to significantly lower revenues and gross profit margins. FY14 PATMI cumulates to S$5.4m, down 59.3% YoY, which we judge to be a miss versus expectations. In particular, we also note that Tee has proposed a final dividend of 0.50 S-cents which is 80% lower than the 2.50 S-cents declared in the corresponding period last year.

In terms of the topline, 4QFY14 revenues decreased 47.6% due to decreased pace of recognition at ongoing projects. Total outstanding order book for the group now stands at S$360m, of which S$286 is attributed to the engineering business and the remaining S$74m to the telco and wastewater treatment businesses in Malaysia and Thailand. Both our rating and fair value estimate are UNDER REVIEW.

Source: OCBC Research - 23 Jul 2014