TEE International drew a disappointing 22% decline in net profit
Despite its revenue climbing 109% to S$53m.
According to OCBC Investment Research, TEE International’s 3Q13 net profit fell 22% YoY to S$1.4m, taking its 9M13 net profit to S$6.7m (down 13% YoY, forming just 41% of our full-year earnings forecast for FY13).
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Its revenue rose 109% YoY to S$53.0m in 3Q13, but gross profit fell 14% to S$5.7m as cost of sales soared 152% to S$47.3m. The latest results are disappointing and we expect TEE’s share price to weaken in the short term. We put our fair value estimate of S$0.30 and Hold rating for TEE UNDER REVIEW pending a change in analyst.