Tee International Q3 net profit plunges 76.5%

SINGAPORE - Tee International, a mainboard-listed engineering and property firm, reported on Thursday a 76.5 per cent plunge in third quarter net profit, to $133,000.

Revenue for the three months to Feb 28 rose 15.5 per cent to $43.1 million, from a year earlier, owing to higher revenue for ongoing engineering projects.

Cost of sales also increased by 19.2 per cent to $37.3 million. Gross profit fell 3.8 per cent to $5.8 million.

Other operating income fell 10.6 per cent to $995,000, owing to lower interest income from associated companies.

Administrative expenses rose 14.5 per cent to $6.1 million, owing to higher marketing expenses for a property project in Malaysia by Tee Land in the quarter.

The firm said that several large-to-mid scale projects in Singapore and overseas are in progress. Major projects include Marina One, Tampines Hub, and Changi Airport in Singapore, and overseas projects such as MDIS Educity@Iskandar, and St Regis and The Parisian in Macao.

The engineering business recently won $45 million worth of engineering works for commercial buildings in Singapore.

Mr Eric Phua, managing director of the engineering business, said: "We are currently focused on executing ongoing projects, and ensuring these projects are carried out on schedule. In addition, we will continue to leverage on existing business networks to secure new projects."

Earnings per share for the quarter was 0.03 cent, down from 0.12 cent a year earlier, while net asset value per share was 19.3 cents as at Feb 28, up from 19 cents as at May 31 last year.

rachaelb@sph.com.sg