Engtex Group Bhd TP: RM1.38 (+26.6%)

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1 I N I T I A T E C O V E R A G E Monday, December 11, 2017 FBMKLCI: 1, Sector: Building Materials THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Engtex Group Bhd TP: RM1.38 (+26.6%) Main Proxy in Nationwide Water Infrastructure Projects Last Traded: RM1.09 BUY Ooi Beng Hooi Tel: benghooi@ta.com.my Engtex Group Berhad (ENGTEX) is principally involved in distribution and wholesales, manufacturing, property development, and hospitality. The group is a leading one-stop solution provider for water pipes, valves, fittings, plumbing materials, and steel products for water supply, sewerage system, property, and construction industries. Investment case: One-stop solution provider in building materials with strong distribution network; Experienced management team with expertise in water pipe manufacturing; Primary beneficiary from mega water infrastructure projects; and Undemanding valuation. Key Risk: Delay in the progress of pipe replacement projects; Escalation of raw material cost; and Further slowdown in property market. Forecast We estimate the company s FY17 core net profit to contract by -7.5% to RM54.8mn due to expected lower contribution from the wholesale and distribution segment but we forecast the group to achieve core profit growths of 10.1% and 13.6% to RM60.3mn and RM68.4mn for FY18 and FY19 respectively, supported by expected improvement in utilization rate for Ductile Iron Pipes and Cement-lined Mild Steel Pipe as well as declining financing cost. In addition, the newly set-up Electric Resistance Welded Pipe plant and steel rolling mill should start contributing to the earnings in CY18. Valuation We initiate coverage on ENGTEX with a target price of RM1.38, based on 10x CY18 earnings. With an upside of 26.6%, we recommend a BUY call on ENGTEX. Share Information Bloomberg Code ENGT MK Bursa ENGTEX Stock Code 5056 Listing Main Market Share Cap (mn) Market Cap (RMmn) wk Hi/Lo (RM) 1.09/ mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) 51.8 Beta (x) 0.63 Major Shareholders (%) Ng Hook Manulife Asset Management Services Crystal Image Sdn Bhd Forecast Revision FY17 FY18 Forecast Revision (%) - - Net profit (RMm) Consensus (RM'mn) TA's / Consensus (%) Previous Rating - Financial Indicators FY17 FY18 Net Debt / Equity (%) CFPS (sen) 26.1 (25.7) Price / CFPS (x) 4.2 (4.2) ROA (%) NTA/Share (RM) Price/NTA (x) Share Performance (%) Price Change ENGTEX FBM KLCI 1 mth (6.0) (1.2) 3 mth (10.7) (3.4) 6 mth (19.3) (3.8) 12 mth (4.4) 4.9 (12-Mth) Share Price relative to the FBM KLCI Earnings Summary Source: Bloomberg Page 1 of 18

2 11-Dec-17 About the Company Engtex Group Berhad is principally involved in distribution and wholesales, manufacturing, property development, and hospitality. Its history can be traced back to 1983 when ENGTEX was founded by Dato Ng Hook as a hardware retail shop located in Jalan Ipoh, Kuala Lumpur. Subsequently, the group pursued an upstream diversification move by venturing into manufacturing of water pipes, fittings and, wire mesh. The group achieved a remarkable milestone in year 2002 when it was listed on the Main Board of Kuala Lumpur Stock Exchange (now known as Main Market of Bursa Malaysia) and eventually it has become one of the largest manufacturers in water pipes as well as the top three wire mesh manufacturers in Malaysia. The group has further diversified its revenue stream to property development, and hospitality but the total revenue contribution is less than 5% which is still relatively small in comparison with distribution and wholesales, and manufacturing. Exhibit 1: Business Segment, Product and Service The business activities generally can be categorized into 4 main segments, which are distribution and wholesales, manufacturing, property development, and hospitality. Source: Company, TA Securities i) Distribution and Wholesales The distribution and wholesales segment provides a range of different construction materials such as pipes, valve, fittings, hydrants, and steel products to water, property, and construction players. The trading products are either sourced from external suppliers or manufactured inhouse. ii) Manufacturing The manufacturing segment produces construction materials for distribution and wholesales. Currently, the core products under the manufacturing segment are Ductile Iron Pipes (DI Pipes), Cement-lined Mild Steel Pipe (CLMS Pipe), and Wire Mesh. The group had recently Page 2 of 18

3 allocated RM30mn to invest in Electric Resistance Welded Pipe (ERW Pipe) plant and steel rolling mill in Melaka. These additional plants shall be able to commence in the early of Dec-17 Exhibit 2: Manufacturing Plant Manufactured Total Annual Capacity Factory / Plant Product (MT) Ductile Iron Pipes Kuantan 60,000 Cement-lined Mild Selangor 66,000 Steel Pipe Wire Mesh Selangor, Kuantan, 210,000 Penang, Johor, and Sabah Electric Resistance Kuantan 85,000 Welded Pipe * Steel Bar * Melaka 100,000 Source: Company, TA Research Note: *Expected to commence operation in early of 2018 iii) Property Development The group has also ventured into property development business in order to unlock the value of its rich landbanks. The property division successfully completed several property projects such as Tiara Residence and Emerald Avenue. The current on-going property project, Amanja, is expected to be completed by the end of Given the challenging property outlook, the group is not expected to launch any new property development project in the foreseeable future. Exhibit 3: Property Project (As at 30 September 2017) Source: Company, TA Research iv) Hospitality ENGTEX is also involved in hotel operations for 3 hotels namely Ibis Style, Avenue J, and Mercure in Klang Valley. The Ibis Style is located at Bandar Sri Damansara with 144 rooms available whereas the Avenue J is situated at Leboh Pasar with 72 rooms available. The group has just recently launched Mercure in Selayang with room availability of 120. For more information on products and services, please refer to Exhibit 12 to Exhibit 14. Page 3 of 18

4 The Shareholders and Management 11-Dec-17 The senior management is led by the founder and Group Managing Director, Dato Ng Hook, who has more than 30 years of working experience in the hardware, pipes, valves, fittings and plumbing materials industry. He is in charge for the overall strategy and business direction of the Group as well as overseeing day-to-day operational matters. He is assisted by his spouse, Datin Yap Seng Kuan, who is mainly responsible for the Group s Treasury & Credit Control function. Besides, the senior management also includes Mr. Ng Chooi Guan and Mr. Ng Yik Soon. Mr. Ng Chooi Guan, the Managing Director of Engtex Sdn Berhad, is mainly in charge of sales and marketing, business development, procurement of new products for distribution, securing new exclusive distributorships or agencies as well as developing house-brand products. For Mr. Ng Yik Soon, he held various positions in the company prior to taking over his present role of being responsible for the sales and marketing function of a manufacturing subsidiary. Dato Ng Hook, Ng Chooi Guan and Ng Yik Soon are siblings. Based on latest available data, it is estimated that the directors together with their related parties collectively hold about 37.63% stake in the company. Investment case One-stop solution provider in building materials with strong distribution network; Experienced management team with expertise in water pipe manufacturing; Primary beneficiary from mega water infrastructure projects; and Undemanding valuation One-stop Solution Provider in Building Materials with Strong Distribution Network ENGTEX is a well-known player in pipes, valves, fittings, and steel products such as wire mesh in Malaysia as it has been in this industry for more than 30 years. Along the years, the group has successfully built up a diversified customer base with over 3,000 clients that comprise dealers, retailers, hardware stores, industrial buyers, contractors, and end-users. The group is currently offering more than 5,000 types of different product items consist of different types, sizes, and lengths due to its extensive supply chain network that connects to more than 400 sources of supply from both domestic and overseas suppliers. Exhibit 4: Distribution Network in Malaysia Source: Company Website Page 4 of 18

5 11-Dec-17 Hence, ENGTEX has successfully equipped itself to become an one-stop solution provider with strong distribution network, which allows them to leverage on its existing customer base through supplying a wide range of products and services in order to fulfill the diverse needs from the pool of customers. Experienced Management Team with Expertise in Water Pipe Manufacturing ENGTEX is managed by very hands-on management team who has in-depth knowledge about the industry with more than 100 years of combined experience in the building materials and plumbing materials industry. Over the years, the management has cultivated a close relationship with suppliers and customers across the nation and achieved a strong track record with its impressive revenue and net profit growth at CAGR of 14.19% and 13.97% respectively since listing in Under Dato Ng Hook leadership, ENGTEX has successfully become a water pipe specialist as the group is one of the 2 local players that can produce large CLMS Pipe that could go up to 3000mm diameter. In addition, it is also the larger of 2 DI Pipe Manufacturers in Malaysia with the capability to manufacture the DI Pipes up to 800mm diameter whereas its competitor, YLI Holdings Bhd, could only manufacture up to 700mm diameter. Hence, ENGTEX has become the dominant player in a duopolistic market in terms of manufacturing of large diameter water pipes. In recent years, the market demand for larger diameter water pipes with better durability prompts the management to further invest about RM10mn to upgrade its capabilities to produce the DI Pipe with larger diameter of up to 1200mm by 1Q2018. We are positive on such strategic move as it will further strengthen the group s leading position in DI Pipe manufacturing. Page 5 of 18

6 11-Dec-17 Primary Beneficiary from Mega Water Infrastructure Projects Exhibit 5: Langat 2 Water Treatment Project Source: Website In order to resolve a potential water supply crisis due to rising population and industrial development in Klang Valley, the Federal Government has initiated Langat 2 Water Project with its objective to build water treatment and distribution facilities for water transferred from Pahang to Selangor. The project comprises of 19 packages with its target completion date in December ENGTEX has so far secured a total value of RM127mn piping contracts from phase 1 & 2 and the group is eyeing for more jobs from Phase 3 & 4 as the total amount of pipe supply contracts is estimated to be RM230mn. In addition, Selangor government has also initiated the plan to build 2 water treatment plants in Semenyih and Kuala Langat amounting to RM800mn, which are expected to be completed in 2017 and 2019 respectively. Apart from that, ENGTEX is set to benefit further from Selangor government initiatives as it is estimated 6,423km of pipes need to be replaced in Selangor which translates to approximately RM1bn value of contracts up for grab. Besides the current on-going projects, perhaps a major re-rating catalyst in the water industry could come from nationwide pipe replacement project. It is estimated 43,980km of old asbestos-cement pipes need to be replaced nationwide due to leakages as some of the pipes were installed back to colonial period which could easily back to 60 years ago. The total pipe replacement projects may go up to RM10bn as it is estimated to require about 3mn metric ton of water pipes. Given ENGTEX s dominant position in water pipe manufacturing and being a larger player in duopolistic market for large diameter pipes, it will be a major re-rating catalyst for the group when the pipe replacement projects commence. In FY 16, the total pipe manufacturing revenue was about RM169mn. If we conservatively assume the group would be able to capture 30% of the total project value, it will generate an additional pipe manufacturing revenue of RM3bn. This is equivalent to approximately 17.8x of its FY16 pipe manufacturing revenue. Page 6 of 18

7 11-Dec-17 In a nutshell, the nationwide replacement project is a major catalyst that we think will happen sooner or later, which could boost ENGTEX s bottom line significantly in the mid to long term. Exhibit 6: Non-Revenue Water Source: SPAN, TA Research Under the Budget 2018, the government has allocated RM1.4bn to tackle nonrevenue water (NRW) with a target to reduce to 25% of NRW in Malaysia by year At this juncture, ENGTEX has signed renewable 2 years contract with Pengurusan Aset Air Berhad to be an exclusive supplier of pipes to 6 states which are Perlis, Perak, Penang, Johor, Negeri Sembilan, and Melaka. Meanwhile, the Ministry of Energy, Green Technology and Water has recently committed to spend a total of RM531mn on those states that are facing extremely serious water leakages or NRW. These states include Kedah, Pahang, Kelantan, Perlis, Sabah, and Sarawak. Hence, we expect ENGTEX will be a main beneficiary from the current and upcoming projects due to its core expertise in manufacturing of larger diameter pipes with huge plant capacity that enable them to cater for immediate demand. Target Market Given ENGTEX s sales are mainly derived from the domestic market, the target market will still be mainly focused on local contractors and dealers, which have the access to the mega infrastructure projects. Meanwhile, the group is looking to further venture into the export market to expand its customer base by tapping into regional markets. Moving forward, the group will try to identify and fill up the product offering gap arising from different target market in order to further strengthening its position of being a leading integrated manufacturer and one-stop distributor. Industry Outlook Being a building materials provider and a large-scale water pipe and wire mesh manufacturer, the outlook of ENGTEX is highly dependent on the momentum in the construction, property, and water industries. We believe the construction industry will continue to be driven by government-led infrastructure projects whereas the outlook for property industry remains challenging. Meanwhile, the outlook of water industry is relying on the water infrastructure projects such as large nationwide pipe replacement and water treatment Page 7 of 18

8 projects. Although the water industry restructuring is in the state of flux as Federal and Selangor governments are still in the midst of negotiation with water concessionaires over potential consolidation, we believe the issues will be resolved sooner or later as water supply is a basic human need. At present, the group is backed by a healthy order book of RM142mn, which will keep the group busy for another 6 months. Its tender book currently stands at RM335mn. 11-Dec-17 Financial Performance Exhibit 7: Historical and Projected Financial Performance Source: Company, TA Research For FY12, ENGTEX registered a 16% increase in its revenue to RM920.5mn due to higher contribution from wholesale and distribution together with the 2 ongoing property development projects in Selayang. Nevertheless, net profit declined 16% YoY to RM29.2mn mainly due to strong market competition and raising cost of production which compressed the net margin to 3.2%. In the subsequent year, the group had reached a new milestone where the total revenue exceeded RM1.0bn for the first time in the group history thanks to commendable growths of all 3 core business segments due to stronger market demand for construction materials and higher revenue derived from sales of completed property project, namely Tiara Residence in Selayang. The wholesale and distribution, manufacturing, and property development segments recorded revenue growths of 15.1%, 27.2%, and 10.5% respectively in FY13, resulting a surge in the group s net profit by 75.6% YoY to RM51.2mn. In FY14 and FY15, the group managed to maintain similar total turnover of RM1.18bn and RM1.16bn with net profits of RM43.6mn and RM40.4mn respectively despite facing stiff market competition together with cheap influx of steel-related products from China. For FY16, the group achieved another milestone by posting record core net profit of RM59.2mn even though the revenue remained flattish at RM1.07bn as the bottom line was mainly supported by margin expansion. The gross profit margin increased from 14.5% to 18.6% due to better utilisation of resources through sourcing of trading products and raw materials locally and abroad. In addition, the recovery in steel prices as a result of capacity elimination from China had contributed to the margin expansion as well. Page 8 of 18

9 Moving forward, we expect the group to be able to maintain the momentum through a diversified earnings base. 11-Dec-17 Exhibit 8: Revenue Breakdown by Business Segments in Percentage Source: Company, TA Research Although the group had been consistently achieving revenue of more than RM1bn since FY13, the revenue mix remained relatively similar along the years as two-third of the group s revenue was contributed by wholesale and distribution segment with the remaining one-third from manufacturing segment. The revenue contribution from property development and hospitality was less than 5%. We believe the revenue mix may undergo some slight changes because we foresee manufacturing segment will be the main core driver to the earnings growth as ENGTEX remains the primary beneficiary from government-led water infrastructure projects. For the property development and hospitality segments, we do not expect any major earnings surprises. Improving Balance Sheet Exhibit 9: Declining Net Gearing Ratio Source: Company, TA Securities Page 9 of 18

10 The net gearing ratio of ENGTEX moved up along the years, mainly to finance its expansionary plans in the manufacturing segments by acquiring plants and machineries, as well as supporting the on-going property development projects. Nevertheless, the group had managed to reduce its net gearing ratio to 0.90x as at end-fy16. We expect the net gearing to be further reduced to 0.5x with the proceeds of approximately RM110mn from warrant conversion which expired in October In addition, the management has the intention to further pare down its debts by unlocking the value of its properties and landbanks. 11-Dec-17 Capex As far as capex is concerned, we expect ENGTEX to allocate about RM20mn to RM30mn a year for maintenance capex and plants automation. Other than that, we do not think the group will incur additional huge capex for further plant expansion in the foreseeable future. Dividend Policy ENGTEX has yet to fix a dividend policy at the moment. Historically, the dividend payout ratio was generally less than 10% as the group preferred to keep most of the earnings to capitalize on potential attractive business opportunities. However, given its large cash pile from warrant conversion and positive operating cashflow, we believe the group will continue to reward shareholders in the coming years by setting higher dividend payout ratio. As such, we expect dividend payout of 10% for FY17, a higher 30% and 35% for FY18 and FY19 respectively. This will translate into 1.3sen/share for FY17, 4.1sen/share for FY18 and 5.5sen/share for FY19 or dividend yields of 1.1%, 3.8% and 5.0% for FY17, FY18, and FY19 respectively. Forecast We estimate the company s FY17 core net profit to contract by -7.5% to RM54.8mn in due to expected lower contribution from the wholesale and distribution segment but we forecast the group to achieve core net profit growths of 10.1% and 13.6% to RM60.3mn and RM68.4mn for FY18 and FY19 respectively, supported by expected improvement in utilization rate for DI Pipes and CLMS Pipe as well as declining financing cost. In addition, the newly set-up ERW Pipe plant and steel rolling mill should start contributing to the earnings in CY18. The Malaysia operation will still remain as the main revenue generator and we forecast the revenue contribution from other regions may only pick up slowly in the medium to long term. In terms of earnings breakdown, the wholesale and distribution segment is expected to be the dominant revenue contributor with contribution of about 60% to the top lines and half of the group s profits. However, we believe the hidden gem lies within the manufacturing segment, pipe manufacturing in particular as the group is poised to benefit from nationwide pipe replacement projects, given limited comparable competitors. All in, our FY17-19 earnings projections are premised on the key assumptions below: Constant plant capacity for DI Pipes of 60,000mt for FY17-FY19, with a utilisation rate of 30%, 32%, 38% for FY17, FY18, and FY19 respectively; Constant plant capacity for CLMS Pipes of 66,000mt for FY17-FY19, with a utilisation rate of 52%, 55%, 58% for FY17, FY18, and FY19 respectively; Constant plant capacity for Wire Mesh of 210,000mt for FY17-FY19, with a utilisation rate of 40%, 36%, 38% for FY17, FY18, and FY19 respectively; Constant plant capacity for ERW Pipes of 85,000mt for FY18-FY19, with Page 10 of 18

11 a utilisation rate of 40% and 45% for FY18 and FY19 respectively; and Constant plant capacity for steel rolling mill of 100,000mt for FY18-FY19, with a utilisation rate of 45% and 50% for FY18 and FY19 respectively. 11-Dec-17 Key Risks Potential risks to our recommendation include: i) Delay in the Progress of Pipe Replacement Projects Although the nationwide water pipe replacement projects especially on those states with extremely serious NRW require immediate action from the authorities, the progress may not be as soon as expected. In addition, the government and water concessionaires in Selangor may need additional time to reach a conclusion which may potentially affect the financing, tendering and contract awarding progress. ii) Escalation of Raw Material Cost Since ENGTEX uses various raw materials in its manufacturing processes, it is exposed to the risk of escalation of raw materials costs, which might adversely hit its margin. The group is currently relying heavily on scrap metal, hot rolled coils, and wire rod which might potentially subject to temporary shortages, safeguard duties, and foreign exchange fluctuation that could be detrimental to the bottom line. iii) Further Slowdown in Property Market Given ENGTEX is the one of the top 3 wire mesh manufacturers and the wire mesh is mainly used by property developers, the manufacturing segment might potentially be dragged down by lower-than-expected utilisation rate, resulting from a downturn in property market. In addition, the cautious sentiment in the property market may affect the take-up rate for the on-going project, Amanja. Valuation At the moment, there is no listed company in Bursa Malaysia that is directly comparable with ENGTEX. The group is currently trading at an undemanding trailing PE multiple of 6.4x and we believe the stock is undervalued. We think it could be due to its high net gearing ratio of 0.68x as of 3Q17, historically low dividend payout, and the status of water restructuring sector is still up in the air. We assign a target P/E multiple of 10x for ENGTEX considering: I. Dominant position in water pipe manufacturing especially on its capability to produce large diameter water pipes; II. Set to benefit from mega water infrastructure projects as the government has committed to reduce the NRW to 25% in Malaysia; III. Declining net gearing with expected higher dividend payout ratio; and IV. Consistent profit track record with experienced management team. Therefore, we derive a target price of RM1.38, based on 10x CY18 EPS, and initiate coverage on ENGTEX with a BUY recommendation. Page 11 of 18

12 11-Dec-17 Exhibit 10: Peer Comparison Stock Share price Market Cap EPS* P/E ratio DPS Div Yield^ Net gearing P/B ratio (RM) (RMmn) (sen) (x) (sen) (%) (%) (x) CHINHIN YLI N/A Net Cash 0.3 CHOOBEE Net Cash 0.5 AVERAGE ENGTEX Note: *based on latest 4 rolling quarters ^based on previous financial year Financial Statement Profit & Loss (RMmn) Balance Sheet (RMm) YE Dec 31 (RMmn) F 2018F 2019F YE Dec F 2018F 2019F Revenue Fixed assets EBITDA Others Dep. & amortisation (16.6) (19.5) (22.2) (23.5) (23.9) NCA Net finance cost (22.9) (22.9) (22.5) (20.0) (17.0) Cash PBT Others Taxation (20.0) (25.4) (20.1) (22.0) (24.9) CA PAT Core net profit Total assets GDPS (sen) Div Yield (%) ST borrowings Other liabilities Cash Flow (RMm) CL YE Dec F 2018F 2019F Shareholders' funds PBT LT borrowings Non cash expenses Other LT liabilities Non Operating expenses (22.4) (21.1) (22.5) (24.0) (25.9) NCL Changes in WC 8.2 (69.5) 1.0 (64.3) (20.3) Total capital Operational cash flow Capex (74.2) (45.1) (45.0) (30.0) (30.0) Ratio Others YE Dec F 2018F 2019F Investment cash flow (73.0) (44.8) (40.6) (26.1) (26.6) EBITDA Margins (%) Debt raised/(repaid) (17.8) 26.4 (27.0) (87.0) (47.0) Core EPS (sen) Dividend (3.0) (2.3) (5.5) (18.1) (24.0) EPS Growth (%) (8.6) 42.8 (35.6) Others (23.5) (16.7) 90.3 (18.0) (16.0) PER (x) Financial cash flow (44.3) (123.1) (87.0) GDPS (sen) Forex effect Div Yield (%) Net cash flow (25.1) (112.4) (25.7) Beginning cash Net cash (RMmn) (453.8) (475.5) (334.5) (359.9) (338.6) Ending cash Net gearing (%) ROE (%) ROA (%) NTA (RM) P/NTA(x) Page 12 of 18

13 11-Dec-17 Appendix: Exhibit 11: Corporate Structure Source: Annual Report 2016 Page 13 of 18

14 Exhibit 12: Distribution & Wholesale, and Manufacturing Segments 11-Dec-17 Source: Company Website Page 14 of 18

15 Exhibit 13: Property Development Segment 11-Dec-17 Tiara Residence, Selayang Source: Website Amanja, Bandar Sri Damansara Source: Website Page 15 of 18

16 11-Dec-17 Emerald Avenue, Selayang Exhibit 14: Hospitality Segment Ibis Style, Bandar Sri Damansara Source: Website Page 16 of 18

17 11-Dec-17 Avenue J, Leboh Pasar Source: Website Page 17 of 18

18 11-Dec-17 Mercure, Selayang Source: Website Stock Recommendation Guideline BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Not Rated: The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Monday, December 11, 2017, the analyst, Ooi Beng Hooi, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel: Fax: Page 18 of 18