TEE International grows new waste-to-energy wing

SINGAPORE (Oct 14): NRA Capital has issued a “overweight” call on TEE International with a fair value of 34.5 cents given the group has declared its intention to expand into waste-to-energy projects.

In a Thursday report, analyst Liu Jinshu warns that while such ambitions are encouraging, FY17 might be a flat year for the company with margins in its mechanical and engineering (M&E) business offsetting growth in other segments.

In FY16, TEE International’s gross margins dropped to 7.4% causing gross profits to flatten out at $16.7 million despite a 44% growth of group revenue to $226.8 million.

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