Trump International Hotel & Tower Vancouver

A collaboration between the Trump Brand and TA Global

Souce:http://forum.skyscraperpage.com/showthread.php?t=138004&page=167

Dear Vanelevatorman,

Firstly we would like to wish you a very joyous and prosperous 2015! Secondly, we would like to take this opportunity to give you an important update with regards to the Trump International Hotel & Tower® Vancouver. Construction is now on level 66, while residential condominiums are over 70% sold. We remain excited to welcome you in the summer of 2016.

As you may already know, Magnum Projects Ltd. has been acting as our local listing agent in connection with the marketing and sales for this esteemed project. However moving forward, we have decided to take on this role internally, hence effective January 23, 2015, please contact our office directly using the following contact information:

For general inquiries on Trump International Hotel & Tower ® Vancouver:
West Georgia Development Limited Partnership
10-698 Seymour ST, Vancouver, BC V6B 3K6
604-688-8387
info@holborn.ca
For sales related inquiries on Trump International Hotel & Tower® Vancouver:
Rachel Pai
Sales Manager
rachel@trumpvancouver.com
Trump Sales Center: 604-568-7888

We look forward to sharing further updates with you regarding this exciting project, and thank you for your continued success and friendship.

Best regards,
Joo Kim Tiah
President and CEO, Holborn Group

Safe & Sound

Nestle
Dutch Lady
GAB
Carlsberg
Digi
Astro
Public Bank
Maybank
Hong Leong Bank
F&N
LPI
Petronas Dagangan
UMW
AEON
BAT 

Petronas Dagangan Berhad

Financial Financial Revenue PBT Net Profit EPS Dividend NTA Year Quarter (RM,000) (RM,000) (RM,000) (Cent) (Cent) (RM) 2014 3 8,226,648 223,629 160,399 16.1 12 4.89 2014 2 8,367,968 250,787 185,649 18.7 14 4.86 2014 1 8,293,564 223,137 155,079 15.6 12 4.8 2013 4 8,385,988 193,784 151,321 15.2 17.5 4.82 2013 3 8,412,061 315,647 226,209 22.8 17.5 4.85 2013 2 7,924,901 273,041 197,127 19.8 17.5 4.88 2013 1 7,618,972 326,969 237,097 23.9 17.5 5.08
How do you value Petronas Dagangan? 2014 EPS: 15.6(Q1) + 18.7(Q2) +16.1(Q3) + 16.1(Q4, Forecast) = 66.5 cents IF one wish for a 10% earning yield, the price = 0.665/0.1 = RM6.65 IF one wish for a 5% earning yield, the price = 0.665/0.05 = RM13.30 2014 DPS: 12(Q1) + 14(Q2) + 12(Q3) + 12(Q4, Forecast) = 50 cents IF one wish for a 6% dividend yield, the price = 0.50/0.06 = RM8.33 IF one wish for a 3% dividend yield, the price = 0.50/0.03 = RM16.67
Long term 10 year outlook, MR. Optimistic (10% growth) hunting for 15% CAGR:
EPS Growth DPO DPS (Cent) (%) (%) (Cent) 0 66.5 10.00% 0.75 50 1 73.2 10.00% 0.75 55 2 80.5 10.00% 0.75 60 3 88.5 10.00% 0.75 66 4 97.4 10.00% 0.75 73 5 107.1 10.00% 0.75 80 6 117.8 10.00% 0.75 88 7 129.6 10.00% 0.75 97 8 142.5 10.00% 0.75 107 9 156.8 10.00% 0.75 118 10 172.5 10.00% 0.75 129 Total 924 Dividend yield= 3% Price= RM 43.12 Total Dividend= RM 9.24 Total= RM 52.36 Today's Buy Price= RM 12.94 MR. Pessimistic (5% growth) hunting for 15% CAGR:

	EPS	Growth	DPO	DPS
	(Cent)	(%)	(%)	(Cent)
0	66.5	5.00%	0.75	50
1	69.8	5.00%	0.75	52
2	73.3	5.00%	0.75	55
3	77.0	5.00%	0.75	58
4	80.8	5.00%	0.75	61
5	84.9	5.00%	0.75	64
6	89.1	5.00%	0.75	67
7	93.6	5.00%	0.75	70
8	98.3	5.00%	0.75	74
9	103.2	5.00%	0.75	77
10	108.3	5.00%	0.75	81
Total				709
Dividend yield=				3%
Price=			RM	27.08
Total Dividend=			RM	7.09
Total=			RM	34.17
Today's Buy Price=			RM	8.45

Current Price (27-Jan 2015): RM 17.20


So, how do you value Petronas Dagangan?

Digi Berhad's ROE

Fiscal Year	ROE (%)
2013	244
2012	517
2011	90
2010	88
2009	66
2008	61
2007	67
2006	46
2005	21
2004	18
2003	10
2002	8

Nestle Berhad's ROE

Fiscal Year	ROE (%)
2013	68.83
2012	67.34
2011	65.52
2010	63.71
2009	61.99
2008	66.08
2007	45.79
2006	47.34
2005	49.69
2004	48.7
2003	53.14
2002	56.01
2001	49.14
2000	51.08

Dutch Lady's ROE

Fiscal Year	ROE(%)
2013	73
2012	57
2011	42
2010	32
2009	34
2008	26
2007	37
2006	36
2005	23
2004	15
2003	10
2002	11
2001	10
2000	13
1999	13
1998	1

Return On Equity - ROE

Returns on equity play an important role in analyzing companies and putting stock prices and valuation levels in proper context. Most investors tend to concentrate on a company’s past and projected earnings growth. Even top analysts tend to fixate on bottom-line growth as a yardstick for success. However, a company’s ability to produce high returns on owner’s capital is equally as crucial to longterm growth. In some respects, return on equity may be a more important gauge of performance because companies can resort to any number of mechanisms to distort their accounting earnings.

Warren Buffett expressed this
sentiment more than 20 years ago:

“The primary test of managerial
economic performance is the
achievement of a high earnings rate
on equity capital employed (without
undue leverage, accounting gimmickry,
etc.) and not the achievement
of consistent gains in earnings
per share. In our view, many businesses
would be better understood
by their shareholder owners, as well
as the general public, if management
and financial analysts modified the
primary emphasis they place upon
earnings per share, and upon yearly
changes in that figure.” [From the
1979 Berkshire Hathaway annual
report.]

Buffett believes that companies that can generate and sustain high ROEs should be coveted because they are relatively rare. They should be purchased when their stocks trade at attractive levels relative to their earnings growth and ROEs because it is extremely difficult for companies to maintain  high ROEs as they increase in size. In fact, many of the largest, most prosperous U.S. companies—General Electric, Microsoft, Wal-Mart, and Cisco Systems, among them—have displayed steadily decreasing ROEs over the years by virtue of their size.

The key to understanding ROEs, Buffet notes, is to make sure that management maximizes use of the extra resources given it. Any company can continue to produce everlarger earnings every year simply by depositing its income in the bank and letting it draw interest.

“Most companies define ‘record
earnings’ as a new high in earnings
per share. Since businesses customarily
add from year to year to their
equity share, we find nothing
particularly noteworthy in a
management performance combining,
say, a 10% increase in equity
capital and a 5% increase in
earnings per share. After all, even a
totally dormant savings account
will produce steadily rising interest
each year because of compounding.”
[From the 1979 Berkshire
Hathaway annual report.]

Focusing on companies producing high ROEs, Buffett says, is a formula for success, because, as shown above, high ROEs must necessarily lead to strong earnings growth, a steady increase in shareholder’s equity, a steady increase in the company’s intrinsic value, and a steady increase in stock
price.

When evaluating two nearly identical companies, the one producing higher ROEs will almost always provide better returns for you over time.

Five other points are worth
considering when evaluating ROEs:

· High returns on equity attained with little or no debt are better than similar returns attained with high debt. The more debt added to the balance sheet, the lower the company’s shareholder’s equity when holding other factors constant because debt is subtracted from assets to calculate equity. Companies employing debt wisely can greatly improve ROE figures because net income is compared against a relatively small equity base. But high debt is rarely desirable, particularly for a company with very cyclical earnings.

· High ROEs differ across industries. Drug and consumer-products companies tend to posses higher than average debt levels and will tend to record higher ROEs. They can bear higher levels of debt because their sales are much more consistent and predictable than those of a cyclical manufacturer. Thus, they can safely use debt to expand
rather than worry about having to meet interest payments during an economic slowdown. We can attribute the high ROEs of companies such as Philip Morris, PepsiCo, or Coca-Cola to the fact that debt typically equals 50% or
more of equity.

· Stock buybacks can result in high ROEs. Companies can significantly manipulate ROEs through share buybacks and the granting of stock options to employees. In the 1990s, dozens of top-notch companies bought back stock with
the stated intention of improving earnings per share and ROEs. Schering-Plough, the pharmaceutical company, posted unusually high ROEs, in excess of 50%, during the late 1990s because it repurchased more than 150 million shares. Had Schering-Plough not been repurchasing stock, ROEs would have been between 20% and 30%.

· ROEs follow the business cycle and ebb and flow with yearly increases in earnings. If you see a cyclical company, such as J.C. Penny or Modine Manufacturing, posting high ROEs, beware. Those rates likely cannot be maintained and are probably the byproduct of a strong economy. Don’t make the mistake of projecting future ROEs based on rates attained during economic peaks.

· Beware of artificially inflated ROEs. Companies can significantly manipulate ROEs with restructuring charges, asset sales, or one-time gains. Any event that decreases the company’s assets, such as a restructuring or the sale of a division, also decreases the dollar value of shareholder’s
equity but gives an artificial boost to ROE. Firms that post high ROEs without relying on gimmicks are truly rewarding shareholders.