Monday, February 28, 2011


APFT Bhd, flight education and training service provider, aims to raise RM11 million from its initial public offering (IPO) exercise, scheduled for this March 18.

The IPO is in conjunction with the company's listing on the Main Market of Bursa Malaysia Securities Bhd.

Proceeds from the IPO exercise will be used to repay bank borrowings, as well as for working capital and the expansion of its training facility.

Under the IPO exercise, the company would issue 22 million new ordinary shares at an issuance price of RM0.50 per share.

Of the 22 million shares, 15 million shares would be offered to the public and seven million to eligible employees and selected persons.

Another 17.25 million existing shares will be offered for sale by way of placement to identified investors.

APFT is the owner and operator of the Asia Pacific Flight training Academy which currently has 35 aircrafts, 45 instructors and an enrollment of more than 750 students.

Notion ... Feb11

The company is also reducing its exposure to US dollar-denominated sales to 70% from about 90%, a move deemed pivotal to safeguard the exporter’s top line.

Notion’s internal financial guidance for FY11 had taken into account the company’s decision to channel more resources to its camera component manufacturing business due to a weaker HDD market.

The capacity in its HDD parts production facilities would be filled by its camera division operations.

The reduction in US dollar exposure for the company’s sales will be made up by its ringgit-denominated transactions in aluminium ingots, and baht-denominated businesses from its unit in Thailand.

A stronger ringgit against a weakening dollar does not bode well for an exporter like Notion because its dollar-based revenue will be less when converted into ringgit.

Against the backdrop of a weaker HDD market, Notion had earmarked a capital expenditure of RM40 million for FY11, a 64%-reduction from the RM111 million for FY10. The bulk of the RM40 million would be channelled to its Thailand operations, while about RM5 million would go to the aluminium plant.

Its net profit in the first quarter of FY Sept 2011 fell 7% to RM13.4 million, or 8.79 sen a share from RM14.41 million or 10.25 sen a share a year earlier.

Revenue, however, rose 6% to RM59.98 million from RM56.33 million. Net profit had fallen due to higher cost of sales besides operating and finance expenses.
In quarterly terms, first quarter net profit climbed 66% from the preceding fourth quarter while revenue gained 13%.

The company’s FY10 net profit rose 6% to RM38 million from RM35.9 million a year earlier while revenue climbed 31% to RM225.4 million from RM172.7million.

The HDD and camera component divisions made up 44% each of its revenue for FY10. The automotive and industrial component manufacturing business accounted for the remaining 12%.

The HDD and camera segments are expected to contribute 50% and 40% respectively to Notion’s revenue for FY11 while the industrial and automotive unit is anticipated to account for the remaining 10%.

Notion sees companies like Dufu Technology Corp Bhd, Eng Teknologi Bhd and JCY International Bhd as its rivals.

AFG ... Feb11

Langkah Bahagia Sdn Bhd, an investment vehicle linked to Tun Daim, is looking at selling its stake in Alliance Financial Group Bhd (AFG).

Sources say the investor, which effectively owns about 14.8% stake in AFG via Vertical Theme Sdn Bhd, is looking to exit the banking group. Vertical Theme holds 29% in AFG.

Langkah Bahagia is said to be offering to dispose of the stake to parties related to Temasek Holdings Ltd, which indirectly holds 49% in Vertical Theme.

It makes sense for Temasek to acquire the stake from Langkah Bahagia, as that would give the former a more meaningful presence in AFG.

Nevertheless, there us a major hurdle for Temasek. Under the BAFIA, institutions have to obtain special approval from BNM to own more than a 20% stake in a domestic financial institution. In view of the banking regulation, Temasek may adopt a wait and see attitude before deciding on the possibility of increasing its stake in AFG.

LangKah Bahagia or Temasek is not likely to seek BNM approval in relation to the matter in the near term.

Observers say having a larger stake in AFG is in line with Temasek’s portfolio strategy to up its game in the regional banking industry. There is also talk that Temasek is looking at consolidating its banking assets in the region under one umbrella.

UMW: It is a cash rich company. As at Dec 31, 2010, the group’s cash balance stood at RM2.17 billion, compared with total debts of rm2.67 billion, including long term borrowings of rm2.02 billion.

Sunday, February 27, 2011

Malaysian jokes ... 1

Najib, Pak Lah, and Old man Mahathir were patrolling in a helicopter.

Old Man Mahathir: "If I drop a piece of RM1000 note from here,
the person that picks it up must be very happy."

Pak Lah: "If I throw two pieces of RM500notes down, it will make 2 person happy."

Najib: "If I drop TEN pieces of RM100notes, there will be 10 happy people."

The pilot murmuring to himself: "Why don't all of you just jump down from here, that will make
27 million people happy.

Saturday, February 26, 2011


















Friday, February 25, 2011

KimLun ... Feb11

ZJ Research Investment Highlights / Summary
• Up and coming engineering and construction services provider – Kimlun has steadily grown from a small-scale contractor to a full-fledged player capable of both complex building and infrastructure
construction. Clientele comprises prominent property developers from public and private sectors, as well as international contractors.

• Great potential in Industrial Building Systems (IBS). Kimlun is also a capable IBS builder, complemented by its in-house precast concrete products manufacturing arm. It stands to benefit from the Government’s push
for more constructions using the IBS method.

• Bright growth prospects ahead. We expect Kimlun to be kept busy with the bustling construction activities in Iskandar Malaysia,  and the expected rollout of major projects under the 10MP and ETP. Kimlun is a proven supplier of tunnel lining segments for the Singapore MRT projects and would be a likely candidate to supply similar products for our local MRT initiatives.

• Healthy fundamentals. Kimlun is in a net cash position post listing, enabling it to scale up operations with ease to meet rising demand. We project the Group to record double-digit earnings growth over the next two
years riding on back of the construction boom.

• Risks include delays in the award of contracts by its clients and slow rollout of construction projects by the Government, as well as fluctuation in building materials prices.

• Initiating coverage with a Buy recommendation and a fair value of RM2.02, derived by pegging our FY11 EPS projection of 18.4 sen against a peerbenchmarked target PER of 11x. We like Kimlun for its i) promising earnings prospects, ii) healthy balance sheet, iii) proven delivery track record, and iv) reputable clientele from both private and public sector.

Star ... Feb11

Its cash pile will shrink substantially after paying the hefty special dividend that it declared in Oct 2010.

Its cash reserves are expected to contract to rm150 million in 4QFY2010 ended Dec after it forks out rm300 million to reward shareholders with a net special dividend of 40.6 sen per share.

The amount of cash in its coffers could be even lower if it continues to buy more newsprint. In 2009, Star was sitting on 15 months’ worth of newsprint but based on in its balance sheet, the group appears to be replenishing its inventory.

As at Sept 30 2010, Star’s inventories increased significantly to rm182 million from rm78 million in March last year. This could have been due to a purchase of more than rm100 million worth of newsprint during the six months.

The depleting cash pile raises the question as to whether Star will go to the capital markets to raise funds something it has done successfully in the past owing to its strong cash flow. It issued debt paper twice in the last 10 years.

As at Sept 30, 2010, Star had debts of only rm56.4 million, while cash stood at rm494 million. That was before the special dividend was announced. So the next quarter results will reveal the actual amount of cash it has left. Assuming that it is less than rm150 million, as expected, observers feel that it is likely to raise funds again by issuing debt paper.

Already, there has been market talk Star is likely to raise rm600 million to rm700 million. If that turns out to be true, the amount raised will be much bigger than the two previously fundraising exercises.

With its strong cash flow, it can afford to leverage to raise cheap money in the fixed income market.

Thursday, February 24, 2011

Supermax ... Feb11

CIMB Research Investment highlights
• Maintain BUY. Following Supermax’s analyst briefing, we trim FY11-12 EPS by 1.7-3.8% after lowering FY11 capacity by 8.7% to 19.85bn pieces of gloves, in line with its guidance. This reduces our target price RM6.80 to RM6.37, still based on a CY12 P/E of 11.6x or a 20% discount to Top Glove’s target P/E of 14.5x. Although management expects latex rubber prices to retreat in 2H11 and take the 2011 average to RM7.50/kg, it is prepared for a 40-45% nitrile composition in its product mix if demand picks up. Despite the lower capacity in FY11, we retain our BUY rating as we believe the earnings momentum will continue in FY11-12, underpinned by a 3-year EPS CAGR of 7.7%. Potential re-rating catalysts include 1) the restart of
its Sungai Buloh plant, 2) expanding nitrile production, and 3) higher distribution income. Supermax now offers FY11-13 dividend yields of 2.6-2.8%.

• FY11 capacity clarified. Supermax’s FY11 capacity guidance of 19.85bn pieces of gloves (+12.8%) was a negative surprise, being lower than our expectations of 21.74bn pieces of gloves. But management did not make any changes to its FY12 capacity of 23.24bn pieces of gloves, which was a relief for us.

• Rubber prices could fall in 2H11. The company expects natural rubber latex to average RM7.50/kg in FY11, implying a drop from the current price level of c.RM10.60/kg. It thinks that prices could fall in 2H11 due to 1) the normalisation of tapping as wintering is now over, 2) easing of demand for rubber as glovemakers shift to nitrile, and 3) the release of inventory by traders and processors.

• Distribution income to mitigate cost inflation. To combat cost headwinds, Supermax aims to reduce its dependency on manufacturing income and raise distribution income from 40% of total sales to 50% in FY11-12. This would reduce the company’s exposure to volatile raw material prices as the company would
instead take a spread between manufacturers and end-users.

Recent developments
FY10 results briefing. Supermax held an analyst briefing yesterday to discuss its FY10 financial results. The briefing was hosted by the company’s CEO Dato' Seri Stanley Thai, director of corporate affairs Denis Low, and group accountant Andrew Lim. During the 2-hour briefing and lengthy Q&A, management touched upon the latest industry and company-related developments. While management indicated that it expects FY11 revenue to breach the RM1bn mark, it said that it would only give guidance on FY11 net profit after the release of its 2Q11 results which we believe could be later this year in August.

Management ready to switch to nitrile. Management reiterated its commitment to nitrile, indicating that 70% of production lines are interchangeable between natural rubber and nitrile gloves. We believe this gives the company greater flexibility to switch between natural rubber and nitrile depending on demand. Over the past few months, Supermax has increased nitrile from 24% of total capacity to 30%. The company said that it has the ability to increase nitrile production quickly to 40-45% of total capacity should demand prove stronger than expected.

Expects nitrile margins to trend down. While Supermax remains ready to increase its nitrile output, management conceded that margins for nitrile gloves are expected to trend lower. It expects nitrile operating margins to fall from 15-18% to 11-15% in FY11. We believe the margin compression is due to overcapacity in the nitrile markets that Supermax operates in and aggressive pricing by new entrants to the nitrile market.

FY11 capacity expansion clarified... Management expects FY11 total capacity to be 19.85bn pieces of gloves, a 12.8% increase from FY10’s 17.59bn pieces. We expect the higher capacity to come from Phase 1 of Glove City (1.04bn pieces natural rubber gloves) and Factory #10 at Lot 6058 (1.22bn pieces of nitrile powder-free gloves). Management is fast tracking the latter given the robust demand for nitrile powder-free
gloves. Capital expenditure for Factory #10 is expected to be RM66.1m, which is within our expectations.
…but lower than our forecast. Management’s capacity guidance for FY11 was a negative surprise to us, being lower than our expectations of 21.74bn pieces of gloves. But management did not make any changes to its FY12 capacity of 23.24bn pieces of gloves, which is a relief.

Distribution income to mitigate cost inflation. To battle rising raw material costs, Supermax aims to reduce its dependency on manufacturing income and focus more on its distribution business. Currently, distribution accounts for 40% of the group’s sales but management hopes to increase this to 50% in FY11-12. In our view, this would reduce Supermax’s exposure to volatile raw material prices as the company would take a spread between manufacturers and consumers. Supermax has set up two companies to help expand its distribution reach, namely Supermax International Sdn Bhd and Supermax Global Ltd. Supermax International has been set up as a regional distribution company in Malaysia while Supermax Global is registered in Bermuda. Both entities will enjoy attractive tax rates and help Supermax offset rising
raw material cost at its manufacturing division.

Rubber prices could fall in 2H11. Supermax expects natural rubber latex price to average RM7.50/kg in FY11, implying a drop in prices from their current level of c.RM10.57-10.60/kg. It indicated that the following would help push prices lower in 2H11 1) normalisation of tapping as the wintering season is now over, 2) a shift from natural rubber to nitrile, which would help ease demand for natural rubber latex, and
3) release of inventory by traders and processors in Cambodia and Vietnam which have limited storage space.

Earnings outlook
Adjusting forecasts for lower capacity. We cut our FY11-12 EPS numbers by 3.8-1.7% to 51.8-57.6 sen to reflect a more conservative capacity expansion programme, as indicated during the briefing. While the scaled-down capacity expansion will mitigate fears of oversupply, it reduces our growth expectations for Supermax. However, we make no changes to our FY13 EPS of 61.6 sen, which means that our 3-
year EPS forecast of 7.7% is intact.

Valuations remain undemanding. Supermax is trading at a CY12 P/E of just 7.4x, which is about 40% lower than the market’s forward P/E of 12.7x. Its valuations are undemanding given its 3-year EPS CAGR of 7.7%, which is well-supported by the steady global demand growth of 8% p.a. for natural rubber gloves and 15% for nitrile gloves. Also, the stock’s earnings are backed by long-term structural trends in the
sector such as 1) the modernisation of the healthcare sector in China and India, 2) increasing hygiene awareness in emerging countries, and 3) increased medical coverage for 32m uninsured Americans as part of the US healthcare reform bill.

Maintain BUY. Following Supermax’s analyst briefing yesterday, we trim our FY11-12 EPS by 1.7-3.8% after lowering FY11 capacity by 8.7% to 19.85bn pieces of gloves, in line with management’s guidance. This reduces our target price RM6.80 to RM6.37, still based on a CY12 P/E of 11.6x or a 20% discount to Top Glove’s target P/E of 14.5x. Despite the lower capacity in FY11, we retain our BUY rating as we believe the
earnings momentum will continue in FY11-12, underpinned by a 3-year EPS CAGR of 7.7%. Potential re-rating catalysts include 1) the restart of its Sungai Buloh plant, 2) expanding nitrile production, and 3) increasing distribution income. Supermax now offers dividend yields of 2.6-2.8%.

Airasia ... Feb11

AirAsia Bhd's decision to defer the delivery of a batch of A320 aircraft is expected to relieve pressure on the balance sheet of the highly-geared low-cost carrier.

The move would help reduce AirAsia's net gearing and maintain it below the 2-time level next year (2011).

AirAsia's relatively-high net gearing has always been a concern among some investors despite the company's strong growth over the years. As at end-September 2010, AirAsia's net gearing stood at 2.02 time, down from 2.27 times as at end-June 2010.

The aircraft deferment reaffirmed positive stance on the group, as it reflects a forward planning, ambitious-yet-prudent management team.

The lower number of aircraft obligations in 2012 will reduce capital expenditure burden and hence debt-funding requirement as well as lower interest expense.

To recap, AirAsia announced that it had signed an amendment agreement with Airbus SAS to defer taking delivery of 10 A320s in 2012 to 2015 with no penalties payable.

The deferment was to give the group the flexibility to switch from its current order of classic A320 to new generation A320 aircraft, which is supposed to be more fuel-efficient. The deferment will allow the group to optimise capacity with rising air travel demand while relieving pressure on its balance sheet. The move to delay delivery of its aircraft would also help AirAsia attain higher yields and load factors.

With the advent of Firefly encroaching into AirAsia's market, the risk of capacity oversupply is real and cannot be taken lightly Slower capacity growth would help improve yields and load factors.

AirAsia's ability to fund new aircraft purchases and repay loans should no longer be a major concern as operating cashflows should strengthen on stronger earnings visibility.

Wednesday, February 23, 2011


BHB is primarily involved in the manufacturing and distribution of biomass boilers.

BHB is an associate company of QL Resources by virtue of the 40.51% equity interest in Boilermech Sdn Bhd (BSB) held by QL Resources’ wholly owned subsidiary QL Green Resources Sdn Bhd (QLGR). BHB was converted from a private limited company to a public company on May 14, 2010, to facilitate the listing of BSB.

QLGR had entered into a share acquisition agreement to acquire a total of 202,559 BSB shares, representing 40.51% of the issued and paid up share capital of the company, for RM29.17 million.

Primarily involved in marine-based product manufacturing, integrated livestock farming and palm oil activities, QL identified the biomass renewable energy sector as one of the major growth areas for agriculture and renewable energy in Southeast Asia.

Back in October 2010, QL Resources’s investment in BSB is aimed to capture the growth opportunities in the palm oil industry, the agricultural processing sector and the biomass renewable energy sector in Southeast Asia as well as other palm producing countries. Its investment in BSB would complement the group’s strategy to expand its biomass renewable energy business.

BSB recorded audited revenue and profit after tax of RM98.78 million and RM12.34 million, respectively, for the financial year ended April 30, 2010. Its audited net assets stood at RM12.99 million.

QLGR had on Oct 21, 2010, inked a share sale and purchase agreement with BHB to swap its entire 40.51% equity interest in BSB comprising 202,559 ordinary shares of RM1 each in BSB for a proportionate 40.51% equity stake comprising 90.38 million new shares of 10 sen each in BHB.

The basis for the share swap was arrived at after taking into consideration the net assets of BSB as at Aug 31, 2010, of RM22.31 million. As a result of the share swap, BSB became a wholly-owned subsidiary of BHB and QLGR’s interest in BSB would be held indirectly via BHB.

MPHB ... Feb11

Its move to acquire the remaining 49% stake in Magnum Holdings Sdn Bhd may be a prelude to more corporate exercises within the group. These may potentially generate more interest in the stock, which had been quiet over the past three years.

MPHB had said that after taking full control of its crown jewel in Magnum, it would embark on divesting or unlocking the value of its non-core assets such as landbank as well as financial services operations. Such an exercise is expected to attract attention to the group after a three-year lull in corporate exercises since it privatised Magnum in 2007.

MPHB indicated in its announcement to Bursa Malaysia that it would focus on its gaming operations going forward, and the company plans to divest its non-core assets.

Apart from gaming, the group’s diversified portfolio includes financial services, stockbroking, hospitality, as well as real estate and property development.

The financial services unit is undertaken via Multi-Purpose Insurans Bhd, while the stockbroking comes under A A Anthony Securities Sdn Bhd.

MPHB, which owns the Multi Purpose Tower along Jalan Munshi Abdullah in Kuala Lumpur, undertakes its hospitality business under Flamingo Hotels and Management Services. In terms of property development activities, MPHB had in July last year signed three memoranda of understanding with Bandar Raya Developments Bhd as initial arrangements for joint ventures in real estate development on tracts owned by the group.

These include 107ha, and 130ha within Rawang and Gombak respectively in Selangor, besides another 32ha in Penang.

MPHB planned to raise some RM1 billion from the disposal of its non-core assets.

Estimates show that combined proceeds from MPHB’s asset divestment and land development come to RM2.2 billion.

MPHB’s large landbank might be jointly developed with other developers.

As at Sept 30, 2010, MPHB had a cash pile of RM764.81 million versus RM2.66 billion worth of debt obligations. This translates into a net debt of RM1.9 billion or net gearing of 0.8 times based on shareholders’ equity of RM2.29 billion.

Gaming operations made up 92% of MPHB’s revenue of RM2.71 billion during the nine months ended Sept 30, 2010.

MPHB’s corporate developments will be closely watched by in the investment fraternity in the coming months.

Tuesday, February 22, 2011

Tenaga ... Feb11

Tenaga Nasional Bhd is benefiting from the stronger ringgit versus the US dollar in terms of interest payments on foreign loans, especially loans denominated in the US dollar.

TNB currently services the interest on its overseas loans in both the US dollar and yen with its US dollar loan exposure coming to US$5 billion and its borrowings in the Japanese currency amounting to five billion yen.

The lower repayments due to the higher ringgit has also partly cushioned the impact of rising coal prices.

Tenaga will be going to have a big repayment in April 2011 and with this strengthening of ringgit it will help it to further reduce its obligation on repayments.

Asked whether the rising coal price would reduce the benefits coming from a stronger ringgit, Che Khalib said that while coal prices have gone up by 20 per cent, the ringgit has also strengthened by 10 per cent.

The coal prices was now in the region of US$120 per tonne which has surpassed TNB's US$100 per metric tonne level.

MBSB ... Feb11

The rights issue proposed by MBSB means its major shareholders, the EPF is prepared to pump in more money into MBSB.

That being the case, it would to a large extent halt speculation that the EPF is divesting its stake in MBSB. Such speculation should not come as a surprise as the EPF controlled MBSB has improve its performance in recent years.

But with further upside anticipated, why would the EPF want to sell a stake in MBSB at this juncture?

However, it does not completely put off the long term plan of the EPF to find a suitor for MBSB at the right price.

Based on the targeted sum to be raised from the rights issue of rm500 million, the EPF with 66.31% stake in MBSB is expected to fork out rm332 million for its portion of the call.

Add that to the previous amount of rm280 million that the EPF pumped into MBSB scheme seven years ago, the total sum comes to rm612 million, excluding equity interests that the EPF had acquired earlier.

Fundraising aside, the proposed rights issue could also be seen as a way for the EPF to average down its cost of investment per share in the company, prior to a divestment. It could have bought other shares at a much higher cost earlier.

The EPF already owns a significant stake in RHB Cap. Hence, it need not keep a large 66.31% stake in MBSB and further subscribe to a rights issue costing a few hundred million ringgit. This should be the last round of capital injection from the EPF to further recapitalize MBSB before its divestment.

Malaysia Building Society Bhd (MBSB) achieved a record pre-tax profit of RM207.4mil for the financial year ended December 31, 2010, an increase of 158% from the RM80.3mil seen in 2009.

This contributed to an improved net earnings per share of 20.85 sen and return on equity of 31%.

The group recorded a pre-tax profit of RM72.4mil for the fourth quarter against a pre-tax profit of RM42.3mil in the third quarter. The higher pre-tax profit was attributed mainly to higher loans and financing income and lower loan loss impairment in the current quarter.

The improved performance in 2010 was in line with the group's business strategies on retail products undertaken through its Taking MBSB to the Next Level programme.

As at Dec 31, 2010, net loan, advances and financing stood at RM10.7bil, an increase of 32% compared with RM8.1bil the previous year. MBSB's key retail financial product, the Personal Financing-i (PF-i)continued to be a major contributor to the company's loan asset growth.

Its focus on expansion of the personal financing sector has resulted in an impressive growth. Providing funding to the civil servants at reasonable costs would remain part of our business strategies.

MBSB during the year also ventured into certain market segments especially for mortgage where it began to target high net worth clientele. Similarly, for its contract financing, its corporate business product that was introduced late 2009, MBSB was able to secure financing for government contracts and those in the oil and gas sector.

On deposits, it grew to RM10.5bil as at Dec 31, 2010, an increase of 39% from RM7.6bil in Dec 31, 2009.

To drive its loan expansion, it had in 2010, securitised about RM1 billion of mortgage loan assets. Operationally, MBSB has been able to effectively control its costs, improve efficiency and the service turnaround time due to several key outsourcing exercises undertaken.

MBSB also announced the proposed renounceable rights issue of new ordinary shares of RM1.00 each together with new free detachable warrants to raise gross proceeds of approximately RM500mil.

The company has also proposed to raise its authorised share capital from RM1.8bil to RM2.8bil comprising 2.8 billion MBSB shares by the creation of one billion new MBSB shares.

Monday, February 21, 2011

Supermax ... Feb11

It expects to rake in an earnings growth of between 15 to 20% for the financial year 2011, supported by its planned capacity growth and varying of product mix, in line with market demand.

To support the growing demand globally, it will fast track the construction of a new plant in Meru, while rebuilding its Sg Buloh plant into a full surgical glove production facility. Once completed, the Sg Buloh plant will increase its surgical glove capacity by more than 10-fold.

It may also switch more of its production lines to produce nitrile gloves as increasingly, buyers are purchasing it, compared to the powder free natural rubber ones. The company, has so far switched 30% of its current line to nitrile gloves production from 24 per cent previously.

Should the demand for nitrile gloves continue to rise, the group is well placed to meet the market demand, as up to 70% of the group's production lines are built to be inter-swithcable between natural and nitrile rubber.

Also it is banking on a new income stream derived from global sales and marketing network to mitigate any effects of higher production cost. The company would “aggressively globalise” its operations via its net work of about 700 distributors worldwide. It will sell and distribute medical disposal products that it does not manufacture such as surgical masks via these distributors.

The new stream of income is expected to contribute 5% to our net profit in 2011.

The company recorded a pre-tax profit of RM177.4mil in the financial year ended Dec 31, 2010 compared to RM151.5mil in the previous year.

Revenue was higher at RM923.3mil from RM803.6mil previously, reflecting the result of the implementation of its capacity expansion plans, close monitoring and management of major costs elements as well as efficiency initiatives taken during the year.

Pre-tax profit for the fourth quarter, was however, down to RM32.8mil from RM50.3mil previously, while revenue was higher at RM232.7mil from RM196.4mil.

The company has taken steps to adjust glove prices on a more regular basis to pass through the cost increases, due to rising latex prices to record levels and the weakening US dollar.

AHB ... Feb11

Some 10 years ago, the major shareholders had make good promise of a profit guarantee to the minority shareholders.

The shortfall in profit guarantee came about in 1996 when the company embarked on an initial public offering. After failing to meet the profit guarantee, the company came up with a compensation scheme that was proposed about right years ago. However, the scheme that calls for the company to issue warrants to the minorities, with the option of selling them to the major shareholders, has yet to get off the ground.

A group of minority shareholders that collectively hold more than 10% equity interest in AHB intend to take action for compensation that the guarantors to obliged to make. They plan to call an EGM to seek resolution on this issue of compensation. They propose that the major shareholders fulfill the profit guarantee that has been promised earlier. They want to ask the board as to why they did not execute compensation scheme which was approved by the SC.

To recap, upon the listing of AHB, its major shareholders – Yong Yoke Keong, Yong Chew Keat and Iskandar Holdings Sdn Bhd – provided a profit a profit guarantee that the company would record a pre tax profit of rm12.4 million for FY1997 ended June 30 and rm7.98 million for FY1998 and FY1999.

Yoke Keong, the company’s CEO and MD, is the single largest shareholder with a 21.09% stake. Iskandar Holdings holds 6.85% while Chew Keat holds 6.09% stake.

In its latest annual report, the board states that the directors are continuing to deliberate on the next course of action in relation to the proposed settlement. The guarantors are exploring various options to arrive at a solution to the proposed settlement and will keep the SC informed.

Two of the guarantors – Yoke and Chew Keat – are board members while the chairman of the board is Mirzan Mahathir.

Having more than a 10% stake collectively the group of minority shareholders could call for a shareholders’ meeting to question the board on the shortfall of the profit guarantee or do the guarantors have the financial resources to buy back the warrants issued to the minorities?

AHB has been profitable for the past three financial years, however, its annual net profit was not even rm1 million. For FY2010 ended June 30, it posted net profit of rm903000. Revenue was rm27.2 million.

Based on its market cap currently, it is barely rm8.42 million based on rm0.175.

Some quarters say companies that are trading at such low market value often become an ideal target for parties looking for a shell to undertake a backdoor listing.

Is bringing in a financially strong white knight to implement the compensation scheme the next course of action that the minorities shareholders have in mind. But even if they do bring in a white knight, the chances of a change are remote, considering that the major shareholders hole more than 33% equity interest in AHB.

Another question that arises from this long standing issue is to whether the authorities will step in to compel the major shareholders to fulfill their promise of a profit guarantee.

Sunday, February 20, 2011

Driving to JB

If you get RM 10.00 in your car door handle, use tissue paper or cloth to remove it without opening it and if possible bag it. Drive away immediately. 

Don't check the note until you are in the company of your friends or relatives. The note could either contain powdered drugs to knock you out or make you wonder if some guilty motorists compensating you for a knock or scratch on your car, while you are still wondering, the robber(s) will attack you as you check the car.

This had happened in Johor.

Saturday, February 19, 2011




Friday, February 18, 2011

Coastal ... Feb11

Coastal Contracts Bhd's wholly-owned subsidiaries have collectively secured contracts for the sale of seven offshore support vessels, three tugboats and two oil barges for an aggregate value of about RM268mil.

It had currently about RM760mil worth of vessel sales orders awaiting delivery to customers up to 2012, including these new contracts secured by subsidiaries Coastal Offshore (Labuan) Pte Ltd, Pleasant Engineering Sdn Bhd and Thaumas Marine Ltd collectively.

The revenue stream from the latest contracts is expected to contribute positively to the earnings per share and net assets per share of the Coastal group for the financial years ending Dec 31, 2011 (FY11) and FY12.

Of the seven offshore support vessels sales secured, six units were purchased by Tidewater Group, the world's largest provider of marine support services for the offshore energy industry. The other unit was sold to the Singapore-listed Swiber Group.

Moving forward, greater emphasis would be placed on constructing larger deep-water suited and dynamic-positioning enabled vessels as the Coastal group seeks to broaden its product offering and scale up the shipbuilding value chain.

Mycron ... Feb11

Mycron Steel Bhd, a cold rolled coiled (CRC) steel sheet maker, plans to spend up to RM200 million to double its production capacity to 500,000 tonnes a year from 260,000 tonnes now as part of its strategy to tap into the import-substitution market, says its CEO.

Mycron Steel, a Melewar group subsidiary, plans to build the new mill on the five acres of land beside its existing factory and is now talking to six companies on a bid to supply the machinery for the new CRC mill.

Malaysia is a substantial importer of CRC, with 2009 showing CRC-related product imports amounting to 1.43 million tonnes compared with 1.62 million tonnes a year earlier. With such a large amount of imported CRC, the opportunity for Mycron to tap into the import-substitution market is huge, he said.

They are in deep discussion with Perusahaan Otomobil Kedua Sdn Bhd (Perodua) to supply CRC. Should all go well, it will be supplying CRC to Perodua for the Myvi replacement model, scheduled to be launched in 2011.
Perodua’s CRC is mainly imported. Mycron currently supplies up to 12,000 tonnes of CRC annually to Proton Holdings Bhd.

Apart from the automotive sector, Mycron also supplies CRC to the steel-galvanising and colour-coating sector, in particular to BluScope Steel (M) Sdn Bhd.

Mycron is trying to tap into the import-substitution market, betting that domestic CRC users will begin to seek more local CRC rather than import from abroad.

Under the government’s current iron and steel policy, announced on June 17, 2009, import duties on flat steel products, including CRC, have been reduced to 25% from 50%. The policy also no longer grants import-duty exemption for flat products that can be supplied by local makers such as Mycron, except to companies operating in free trade zones and licensed manufacturing warehouses.

In order to avoid paying the 25% import duty, CRC users have to buy from local manufacturers. Still, not all CRC users have turned to local sources as evidenced by the substantial amount of CRC still being imported into the country. The reason for this is because the quality of local CRC in general does not match preferred standards.

Mycron’s new mill is expected to enhance its product quality besides expanding production capacity in order to capture a bigger slice of the import-substitution market.

For 1QFY11 ended Sept 30, 2010, Mycron’s revenue totalled RM105.98 million, up 24.7% from the previous corresponding period while net profit totalled RM4.23 million, a reversal of the net loss of RM2.86 million previously.

Unlike most steel players, Mycron’s net gearing is considered relatively modest at 64.6%. As a result, it also pays good dividends, with a dividend yield of about 5.38% based on its prevailing share price.

As at Sept 30, 2010, the company had RM50.3 million in long-term borrowings, RM132.19 million in short-term borrowings and RM12.05 million in cash. That translates into a net debt of RM170.44 million against shareholders’ equity of RM263.65 million.

Thursday, February 17, 2011

YTL Land ... Feb11

The company is to be one of the beneficiaries of the upcoming MRT project under the government’s greater KL plan.

Meanwhile, the proposed injection of new development land bank, which includes prime parcels in Kuala Lumpur’s Golden Triangle and Singapore, into YTL Land by parent YTL Corp Bhd also boosted interests in the former.

YTL Land’s land parcels in Sentul, KLCC-Bukit Bintang and KL Sentral are strategically located near the upcoming MRT stations, adding that the potential development value of the land is poised to increase significantly.

The injection of prime land into the KL city centre and Singapore by parent YTL Corp would make YTL Land a regional player.

The injection of new land bank into YTL Land, proposed late 2010, is seen as a property asset rationalisation exercise within the YTL Corp group. YTL Corp owns 60.77% of YTL Land.

YTL Land’s present crown jewel is the former KTM depot land in Sentul, which has an outstanding development area of 46.76 ha. The injection of new land bank would further expand its asset base, with the addition of 400 ha of land in Bidor, over 120 ha in Genting Highlands, and pockets of prime land in the KL city centre such as Bukit Bintang, Jalan Stonor, Jalan U Thant, Brickfields, as well as Orchard Boulevard and Sentosa Cove in Singapore.

YTL Corp has proposed to inject these assets into YTL Land for a consideration of RM476.1 million, which include the settlement of RM262.4 million outstanding inter-company balances owed by these assets to YTL Corp.

YTL Land plans to facilitate the acquisition with RM223 million in cash and the remaining RM253.1 million via an issuance of ten-year irredeemable convertible unsecured loan stocks (ICULS).

In addition to the RM476.1 million, YTL Land has to settle another RM1.04 billion with its parent, being inter-company balances owed to YTL Corp by the Orchard Boulevard land in Singapore. However, the sum will only be settled later via “other funding arrangements”.
All in, the total purchase consideration for all the assets would come up to RM1.52 billion, which is still at a 16.5% discount to the total market value of the RM1.82 billion for the land bank that would be injected.

Of the assets to be injected into the company, YTL Land has announced plans to develop the land in Orchard Boulevard, Sentosa Cove, and Jalan U Thant with a total estimated gross development profit of RM290.7 million. It also has plans to develop the “to-be-injected” land in Bukit Bintang and Jalan Stonor for commercial use.

These would diversify YTL Land’s earnings base to include prime land bank in KL and Singapore at reasonable valuations and beef up YTL Land’s balance sheet to take on bigger projects in the future. YTL Corp’s stake in YTL Land may increase to as high as 69% (upon conversion of ICULS) from about 60% currently.

For FY10 ended June 30, YTL Land posted a net profit of RM18.6 million on the back of RM246.7 million in revenue. Its net profit for 1QFY11 ended Sept 30 was RM3.2 million.

Premium ... Feb11

Following a failed general offer by its major shareholders almost two years ago, Premium Nutrients Bhd has received an offer from Indonesia-incorporated Agro Asia Pacific Ltd to take over the former’s core businesses for a total of RM117.95 million.

Premium Nutrients, a downstream player in the palm oil industry, had received an offer by Agro to acquire the entire stakes of three units of Premium Nutrients, namely Arani Agro Oil Industries Ltd, Premium Vegetable Oils Sdn Bhd and Premium Fats Sdn Bhd. The three subsidiaries represent the core business of Premium Nutrients.

Should Premium accept the offer, it would be formalised in the form of a share sale agreement drawn up by Agro by Feb 18 2011.

Agro is a unit of Singapore-based plantations group Goodhope Asia Holdings Ltd. The group has presence in the plantation industry regionally, mainly in Malaysia and Kalimantan, Indonesia.

Premium Nutrients said it will deliberate on the terms of the offer and next course of action.

The current offer values each share at about 35 sen. But this does not take into account long- and short-term borrowings of RM193.7 million. The company has cash of RM41.9 million and receivables of RM95 million as at Sept 30, 2010.

Over 95% of Premium Nutrients’ production in Malaysia is exported to over 55 countries, including those in North America, Europe, the Middle East, South Asia and Australia. Its list of customers includes multinationals such as Cadbury, Nestlé, Kerry Ingredients (Malaysia), Bunge Ltd (Canada) and Kraft Foods.

It is noteworthy that in July 2009, Premium Nutrients’ major shareholder, Koperasi Kebangsaan Permodalan Tanah Bhd (KKPTB), a national land cooperative linked to Premium Nutrients’ chairman Tan Sri R Somasundram, undertook a mandatory general offer for the company at 25 sen cash per share.

KKPTB’s principal business activities include landed proprietors, investment holdings, operating rubber, oil palm and coconut estates, processing oil palm products, and developing land and housing projects in Malaysia.

Prior to the takeover offer, KKPTB owned a 32.1% stake in Premium Nutrients. However, the co-op failed to take Premium Nutrients private with a total of 56.95% stake in the company after the closing of the acceptance period for the takeover.

Wednesday, February 16, 2011

Maxis ... Feb11

- In the news on Friday, Maxis announced that its Maxis Movies mobile application has been downloaded 50,000 times since its soft-launch 3-months ago. VP and Head of Products, T. Kuhan said that Maxis is positive that all (of its currently 7.1m mobile internet users) would eventually use the application, which allows moviegoers to purchase movie tickets anytime and anywhere. Smartphone users may freely download the application but 50 sen will be charged for ticket bookings.

- Maxis tied-up with GSC and TGV Cinemas to enable its subscribers to book the cinema tickets. The company also entered a 1-year partnership with PayPal’s mobile payment service to ensure that all ticket payments would be simplified and secured in as little as 2 clicks.

- Maxis plans to further broaden its offering of mobile internet services and is looking into the healthcare and education segments. COO, Jean-Pascal van Overbeke said “we want to aggregate these different industries and content for a single customer base”.

Financial impact
- None currently as the financial impact is non-material at this point. However this reinforces our 2011 Telco Sector Outlook (“Competitive Partnerships Converging”, published on 19th January 2011) in which we expect partnerships to be formed between fixed, mobile telcos, and media & content providers.

Pros / Cons
- Maxis is positioning itself as an early adopter and partner of media and content providers. We await further signs of competition and revenue contribution to revise our numbers.

- The push towards the development of mobile applications and partnerships with content and value-added service providers is certain to be emulated by other mobile operators. This would serve to enrich the mobile dataservices ecosystem and invariably accelerate the adoption of mobile broadband and data services.

- Irrational competition, handset subsidies, regulation of mobile tariffs and pricing.

Rating / Valuation
Maintain Hold, with an unchanged TP of RM5.43
- Positives – New business opportunities, strong cashgeneration and defensive dividends.

- Negatives – Potential irrational competition, regulatory risks.

- At current prices, Maxis is trading at a PER of 15.8x and 14.8x for FY11 and FY12 respectively. A net dividend yield of 6% would serve to underpin its share price. Our unchanged TP of RM5.43 is based on DDM with aWACC of 7.8%.

Kencana ... Feb11

It plans to finance the US$200 million required to jointly develop and operate the Berantai oil and gas field through an equity/debt fund raising exercise.

The detailed breakdown between the various sources of funding has yet to be determined at this juncture, pending completion of the company’s proposed fund raising exercises in its entirety.

Its partner, SapCrest was in discussions with a leading local bank to secure the necessary funding to part-finance its unit, Sapura Energy Venture’s contribution to the cost of development of the Berantai field.

Kencana, SapuraCrest and Petrofac Energy Developments Sdn Bhd were awarded a risk service contract (RSC) by Petroliam Nasional Bhd to carry out the development and production of petroleum resources from the Berantai field. Kencana and SapuraEnergy Ventures will hold a 25% stake each and PED 50%. The total development cost is US$800 million.

Under the RSC, the operating parties shall be jointly responsible to provide a field development plan and secure the funding to extract the petroleum resources from the Berantai field, which is 150km offshore Terengganu.

The development of the Berantai field will involve the provision of one well-head platform with 18wells together with related pipeline linking it to another existing platform anda provision of a floating production, storage and off-loading vessel (FPSO). A second well-head platform is also expected to be installed in a subsequent phase.
The RSC will be for about nine years, starting Jan 31, 2011. The target for first gas is by the end of December 2011 with the first development phase of 18 wells expected to be completed before end of 2012.

The total development cost including for the subsequent phase, to be incurred collectively by the operating parties, is estimated to be US$800 million excluding the FPSO.

MPHB ... Feb11

Contrary to wide market expectations, Multi-Purpose Holdings Bhd (MPHB)'s plan to
relist its numbers forecast operator (NFO) Magnum Corp Bhd has been put on hold, as the company shifts its focus to reformatting its business structure.

MPHB managing director Datuk Surin Upatkoon said there is no plan to relist Magnum for the time being.

Following its proposed acquisition of the balance 49% stake it does not already own in Magnum Holdings Sdn Bhd, MPHB expressed its intention to make gaming its core business, while it would work towards the rationalisation of its non-core assets such as insurance and stockbroking through a divestment programme. It gave no hint of the widely expected relisting of Magnum shares on Bursa Malaysia.

MPHB planned to raise about RM1bil by selling its non-core assets to focus on gaming.
MPHB could look more attractive now, given increased contribution from cash-cow Magnum and the potential divestment of its non-core assets.

Based on MPHB's results for the third quarter ended Sept 30, 2010, gaming contributed 91% to the group's total revenue and 65% to pre-tax profit. MPHB's revenue for that period stood at RM850.7bil, while earnings were RM126.5bil. This compares with revenue of RM813.2bil and earnings of RM51.6bil in the previous corresponding period.

The acquisition expected to be concluded by May 2011, does not include rm675 million of nominal value RCULS in Magnum.

The deal essentially values Magnum at rm3.34 billion. This translates to 11 times of Magnum’s 2010 forecast earnings based on MPHB’s nine month profit before tax from its gaming operations.

While its is not surprising that CVC is looking to exit as the three year timeframe for its investment is up, its willingness to sell its stake at a relatively low valuation could be rather puzzling for some.

But close scrutiny reveals that CVC is making a least 60% return of its investment in Magnum within three years, plus it will still have about 10% to 15% in MPHB.

Given that CVC is letting go its valuation stake in Magnum at a lower valuation, CVC would most likely be betting on the potential value of the MPHB stake it will be getting from the deal.

As a result of the acquisition, MPHB will immediately be earnings accretive for MPHB even after taking into account the enlarged entity.

Although MPHB will raise its borrowings by another 809 million, do not expect any increase in interest expenses as the debts in Magnum that carry a 11% interest rate will be retired and likely to be financed at a lower rate.

MPHB would most likely take on borrowings to finance the rm809 million cash portion of the purchase consideration as its cash pile art end Sept 2010 totalled rm765 million against long term borrowings of rm1.85 billion. But this is widely expected to be secured against Magnum’s strong cash flow.

While investors may be disappointed that the much talked about relisting of Magnum did not materialize, the acquisition would see the incarnation of Magnum in the form of MPHB – shareholders of Magnum would have full exposure to the NFO via MPHB.

The acquisition would make gaming MPHB’s core business. This presents an opportunity to rationalize its non core assets through a divestment programme to be initiated later. MPHB plans to raise some rm1 billion by selling its no core assets to focus on gaming. If there is any divestment, the funds will be used to pare down any outstanding borrowings.

MPHB also has business in the financial services, securities broking and property and leisure segments. Its largest revenue contributor, however, is the gaming business. Its second largest revenue contributors is the financial services division. It has also large landbank within its property division.

The divestment and landbank development will be the next re-rating catalyst for MPHB.

Monday, February 14, 2011

GenM ... Feb11

Genting Malaysia Bhd appears to be expediting its share buy back activities while at the same time committing fresh investment into gaming assets in the US and UK.

As at Feb 8, 2011, total Genting shares retained in the treasury account amounted to 252.95 million shares, which is worth RM870.2 million based on GenM’s price of RM3.44. The number of treasury shares has risen by 21.5% from 208.2 million as at May 31, 2010.

Genting shares retained in the treasury account currently represented about 4.3% of the group’s total issued shares of 5.92 billion shares.

Note that in a filing with Bursa Malaysia on Jan 26 2011, the group had said it “intends to purchase up to a further 340.86 million of its shares (representing approximately another 5.76% of the issued and paid-up share capital) within the next five months (Feb 2011-June 2011).

Such further purchase is expected to cost the group at least another RM1.17 billion, assuming if Genting’s shares doesn’t fall from its current level, and nudge its total treasury shares to the permitted 10% level.

As per Bursa’s listing requirement, a public listed entity generally is not permitted to own shares or hold any of its shares as treasury shares if this results in the aggregate of the shares purchased or held exceeded 10% of its issued and paid-up capital.

Share buybacks can enhance the returns per share of a company. It will be better if the shares are purchased when they are undervalued. Such moves theoretically favour shareholders as earnings and dividends are split among fewer shares.

Observers say Genting will continue to buy back shares in weeks to come. The group has sufficient cash flow to purchase more than 300 million of its shares within five months.

Genting’s decision to buy back shares also enables the group to earn a stronger return on excess cash. Genting’s 30-year contract to redevelop the Aqueduct Racetrack in Ozone Park, New York, has made the group “extremely attractive.”

Genting has been comfortable and actively buying back several tranches (of its own shares) at RM3.20 to RM3.30 levels. With close to RM900 million worth of treasury shares, it could also keep a portion for strategic choices, such as cancelling it or distributing it to shareholders while not discounting Genting declaring interim dividend payment in the first half of FY2011 ending Dec 31.

Genting’s net profit for 3QFY10 ended Sept 30 dipped 6.4% to RM336.41 million from RM359.45 million a year ago on the back of a lower revenue of RM1.2 billion versus RM1.34 billion. It posted basic earnings per share of 5.92 sen in 3QFY10 while net assets per share stood at RM1.96 as at Sept 30.

Redtone ... Feb11

It has been dragged down by losses in the new segments it ventured into, such as its WiMAX operations in Sabah and Sarawak and its Chinese oriented IPTV service.

It has also not stayed the same as a telco, which means consumers can count on RedTone to always innovate and try something new. Although it burnt its fingers in the Pakistan market some years ago, the company’s entry into China in 2006 appears to be finally bearing fruit.

Redtone’s valuations of Redtone Asia Inc, which houses its China operations, was US$22 million (rm67 million) in 2010 – close to Redtone’s market cap of rm90 million. This valuations was derived in Redtone’s reverse takeover of Hotgate Technologies Inc.

Its China’s operations contributed 16% to Redtone’s top line in 2010 and was the most profitable segment, posting. Now into 2QFY2011, China looks set to contribute more to Redtone’s bottom line.

The good performance in China is attributed to ultra low capital expenditure and a highly scalable and replicable business model.

Redtone’s cap expenditure for China is only around rm1 million to rm2 million a year.

In Malaysia, the group is in the red in two of its segments – its IPTV business and WiMAX operations in Sabah and Sarawak. Their losses overwhelm the profits from China’s at parent company level.

However, Redtone has a few options to turn the tide.

First it is planning to pare down its stake in RAI to around 70% from the current 90% through a share placement exercise in 2011 that could boost its coffers and results. A 20% stake could fetch around US$4.4 million.

Second, the company’s IPTV market will grow. TM’s goes into the mainstream market, so it foes head to head with Astro. Redtone’s is estimated to have invested some rm20 million in the IPTV business over the last three years. The service was launched in 2010.

The other options is to cut its losses in Sabah and Sarwak. It hints that parties have expressed interest in acquiring the company’s WiMAX operations there, which have seen rm20 million in investment till Feb 2011. This presents another opportunity for Redtone to turn things around.
As for its 4G licence in Peninsular Malaysia, Redtone hopes to roll out the services by 2011, pending approval from the MCMC. It is targeting corporate and SME customers.

With so many possibilities, it is likely that RedTone will keep evolving with times.

Sunday, February 13, 2011

BECAREFUL: Bangkok International Airport

Be warned and be really careful, check the items you bought and give back what does not belong to you even when the shop assistants claimed it's 'free'. I believe the duty free shop assistants would also get a, be very, very careful. Read below My Dept. secretary informed on this. Her cousin was detained in Bangkok for stealing a box of cigarettes in a duty-free shop in Bangkok International Airport .

He had paid for chocolates and a carton of cigarettes. The cashier put a packet of smokes into his bag and he thought it was a free pack. He was arrested for shop-lifting and the Thai Police extortion price was equivalent to RM30, 000 for his release. He spent two nights in jail and paid RM50 for an air-con cell, 200-300 baht for each visitor, and RM11,000 for his final release.

The Police shared the money in front of his eyes. On top of that, he was charged in court and fined RM2,000 by the magistrate and handcuffed and escorted to his plane.

His passport was stamped "Thief". While there, his relatives requested help from the Malaysian Embassy and was told that they are helpless, as Malaysians are victimised similarly daily and letters and phone-calls to
the Thai Authorities are ignored. He shared a cell with a Singaporean the 1st night who paid RM60,000 for his release.The 2nd night was an   Indian national who paid USD70,000. Mind you this is not in a shag
downtown Bangkok but in a duty free shop in Bangkok 's Int'l Airport.

Saturday, February 12, 2011

BECAREFUL: Duped by credit card scam upon check in at Hotel

You arrive at your hotel and check in at the front desk. When checking in, you give the front desk your credit card (for all the charges for your room). You get to your room and settle in. Someone calls the front  desk and asked for (example) Room 620 (which happens to be your room).

Your phone rings in your room. You answer and the person on the other end says the following, 'This is the front desk. When checking in, we came across a problem with your charge card information. Please re-read me your credit card number and verify the last 3 digits numbers at the reverse side of your charge card.

Not thinking anything you might give this person your information, since the call seems to come from the front desk. But actually, it is a scam of someone calling from outside the hotel/front desk. They ask for a random room number. Then, ask you for credit card information and address information. Sounding so professional that you do think you are talking to the front desk. 

If you ever encounter this problem on your vacation, tell the caller that you will be down at the front desk to clear up any problems. Then, go to the front desk and ask if there was a problem. If there was none, inform the manager of the hotel that someone called to scam you of your credit card information acting like a front desk employee.