NRA Capital Pte Ltd

Written by: Jacky Lee

Thursday 7 Aug 2014

TEE International – Press release

Another big project secured from Macau

TEE International undertakes MOP 385 million worth of M&E works for The Parisian Macao.

SINGAPORE, 7 August 2014 –TEE International Limited has secured a total of MOP 384,477,968 million or about S$60m worth of contracts to carry out Mechanical and Electrical (M&E) works (the “Macao Project”) for the Venetian Cotai Limited’s (a subsidiary of Sands China Ltd) property development in the Macao Special Administrative Region, named The Parisian Macao, located at the Cotai Strip Resorts Macao.

In connection with this, TEE Group’s wholly-owned subsidiary, TEE Hong Kong Limited entered into a 55:45 joint venture agreement with Hou Chun Construction and Engineering Company Limited, whereby a joint venture company, TEE-HC Engineering Company Limited was formed to undertake the Macao Project.

Venetian Cotai Limited is a subsidiary of Sands China Ltd, and it is part of the world renowned brand in the gaming industry, Las Vegas Sands Corporation (Las Vegas Sands). This is the second time TEE is working with Las Vegas Sands, following an earlier business relationship established in 2008, when TEE was awarded S$160m worth of contracts to carry out M&E projects for the Marina Bay Sands Integrated Resort in Singapore.

Commenting on this latest addition to TEE Group’s order book, Mr CK Phua, Group Chief Executive of TEE said: “It is with great pleasure to once again work with the prestigious Las Vegas Sands. Our successful partnership is an instance of how we are able to grow alongside with our clients, and to be the preferred partner of choice when it comes to delivering high value and complex engineering projects for the gaming industry and beyond.”

Under the contracts, TEE will be carrying out M&E works for the Hotel-Apartment Tower, and the Podium that comprises meeting rooms, restaurants, retail outlets and family friendly entertainment activity areas. Sands China is currently developing The Parisian Macao - its fourth property at the Cotai Strip Resorts Macao, which is expected to open in late 2015. It is to feature approximately 3,000 rooms and suites, gaming space, a retail mall, replica Eiffel Tower, MICE space, diverse food and beverage options, and entertainment. The total cost of the project is an estimated US$2.7bn.

Valuation:

We continue to like TEE International’s capability to secure large engineering projects. Traditionally, large projects M&E works are tendered in several phases, like Marina Bay Sands (3 projects secured with total value of S$140m). Given its strong track record, we believe TEE will continue to secure orders from these few existing large projects, such as Changi Airport and Marina South Project, as well as this later Macao project. 

Including the Macao Project, TEE’s total outstanding order book for engineering now stands at approximately S$420m.  We believe this will make TEE as busy as a bee over the next two years.

Maintain Overweight recommendation, forecasts and fair value at S$0.30, still based on 9x PER FY15.

 

Additional Company Specfic ReportsDate
TEE International – Press release
free
11 May 2015
TEE International – press release
free
6 February 2015
TEE International – Press release
free
7 August 2014


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