Asian Pac Holdings ( APH ) currently has three active divisions contributing to the Group's results, namely, Property Development, Mall Operations and the Car Park Operations. For those Sabahan or those went to Kota Kinabalu before, Imago Mall located at the centre of city, opposited was development by Mahsing group ( Sutera Avenue).

The reasons why I started my sharing from Imago Mall but not APH core business, please refer below:

1.)  Imago Mall won the 5 Star Achievement for Best Retail Architecture Malaysia and Best Retail Development Malaysia categories.

2.)  Imago Mall was also nominated as the Asia Pacific region nominee in the Best Retail Development category.

3.)  Healthy occupancy rate of 89% in the financial year 2016 with quality tenant mix such as ( MBO, Everise Supermarket, Swarovski, Kate Spade New York, TUMI, Parksons, Brands Outlet, Padini, Seoul Gardens, Popular, Kmax Karaoke, ToysRus, Kaison etc)

4.)  In my point of view, Imago just like the One Utama and Mid Valley at Kota Kinabalu. The ONLY QUALIFY competitor is Suria Sabah Shopping Mall. THE ONLY. So, Imago market share at KK City easily more than 50%.

5.)  Ministry of Tourism and Culture has allocated RM1.2 billion to implement various programmes and events to achieve 30.5 million tourists arrivals with a target contribution of RM103 billion in revenue. AHP expect this to contribute further to the growth of Imago Mall, and, hence, bring positive results. Then, Imago is growing in stature with hotels, such as Sutera Harbour (hotel), making Imago Mall a stop in their shuttle bus service for their guests.

Hence, from the few listed points above I remains positive with the growth of AHP alone with its mall operation. Now turn the focus to group property development. Based on latest QR end 31/12/16, property division contributed 80% to group revenue while others mall (15%) and the rest 5% from car park operations, property investment and investment holding. The higher revenue in current quarter was mainly due to the higher revenue recognised by the development from Fortune Perdana and Dataran Larkin 2 projects.

Looking forward, I am optimistic with group property development contribute from on- going project Fortune Central Kepong, Damansara Damai and The Zil Kota Kinabalu. Based on the track record of Fortune Perdana with 100% sold, group management believe that Fortune Central will also achieve 100% take up rate by residents around due to dynamic urban infrastructure of Kepong, its location being strategically connected through a network of highways and roads, located beside AEON BIG Kepong and 5 mins walking distance to MRT Sungai Buloh-Serdang-Putrajaya Line (SSPLine).  The project consists of 2 blocks of 480 units ofcondominium and 26 units of shop lot with targeted GDV of approximately RM270 million.

Ava Damansara is a high-rise mixed-development to be undertaken on a 6.5-acre leasehold land surrounded by lush greenery in Damansara Damai. The proposed development is 2-blocks of 520 units of condominium and 13 units of shop lot with targeted GDV of RM329 million.

The Zil @ KK South is the latest project and is sited on a 16.7 acres leasehold-land located in the growth suburb of Kinarut, about 15 minutes’ drive from Kota Kinabalu International Airport and fronting the Pan Borneo Highway. The project is a 3-phase mixed-development where Phase 1 is a retail-commercial hub consisting of 40 units of 3-storey retail shops with a GDV of approximately RM63 million. Phase 2 is a landed residential development consisting of 118 units of 3-storey terrace house with a GDV of approximately RM65 million. Phase 3 is currently planned for a high-rise residential development consisting of approximately 300 condominium units with an estimated GDV of approximately RM135 million, therefore giving a potential total GDV of RM263 million.

With unbilled sales of approximatelyRM800 million and with the prospective launch of The Zil @ KK South, Fortune Central and Damansara Damai, AHP should see favourable results for the property development division for the second half of 2016 and first half 2017 and spilling over to the next few years during the development period of these new projects.Coupled with the expected growth in the recurring income from AHP mall operations and carpark operations divisions, the following year should continue to see overall positive results.

Current share price at RM 0.185 with P/E 3.11, ROE 6.94, NTA 0.86, EPS 5.94. Fundamental strong counter but undervalue by market investor definitely will correct the price in next two quarter.