TEE International Limited (TEE) has announced three property acquisitions since 23 August 2012 thus adding an estimated S$203.5m of total gross development value (GDV) to its pipeline. Assuming 15% - 20% profit margin, the potential profit attributable to TEE from these projects will be an estimated S$16m – S$ 21m. Prior to the 3 property acquisitions, TEE had also restructured its key management team through internal promotion and external hiring. The new management structure allows separate divisional managers to focus on managing and developing TEE’s business in individual market. Following a series of corporate actions, we are of the view that TEE is now well positioned to execute its two-pronged strategy and grow its business footprint while not losing management focus with its larger and stronger management team. Maintain Increase Exposure with an intrinsic value of S$0.45 per share.

Oxley Holdings Limited (Oxley) announced its full year FY12 results on 23 Aug 2012 after market closed. Revenue grew 125% YoY to S$159.4m in FY12 while net profit was up 63% to S$23.7m. Gross margin held up well at 24.6% in FY12 while PBT margin stood at 18.5%. On 13 June 2012, Oxley completed the Hougang plaza acquisition (50:50 JV with Lian Beng). Oxley’s investment in the JV has a book value of S$0.55m as of 30 Jun 2012. Sales continued its momentum in 4Q FY12 with The Promonade@Pelikat now fully sold. Its industrial developments also continued to sell well. Going forward, we expect Oxley to launch its remaining pipeline, including the most recent 5 acquisitions which have an estimated total development value of over S$1bn over the next 12 months.   Maintain Increase Exposure with an intrinsic value of S$0.60.