Slide 1_21_ by pengtt


									Corporate Presentation
           Presented by:

         Ms Low Su Ming,
      Joint Managing Director
            9 April 2008
Corporate Profile
Corporate Profile   A long-established property developer in Malaysia...

                        • Established in Malaysia on 19 January 1961
                        • Listed on Main Board of KLSE (now Bursa
                          Malaysia Securities Berhad) on 3 July 1969
                        Codes                    Bursa: APLAND
                                                 Reuters: APLA.KL
                                                 Bloomberg: APL:MK
                        Share Capital            RM710.34 mil, consisting of 710.341 mil shares of
                                                 RM1.00 each
                        Market                   RM237.96 mil (RM0.335 as at 7 March 2008)
                        • The Group‟s current principal activities# include
                          land ownership and property development

                    #   With the recent divestment of City Square Center, the Group no longer has
                        interest in office building, hotel, and retail properties                   Bridging valuation gap…
                    Performed in line with the market… but still trading at
                    steep discount to book value of RM1.00/share…
Corporate Profile
                     Share Price Performance

                               52-wk High                   RM0.725 [12/2/07]
                               52-wk Low                    RM0.310 [5/3/08]
                               Period Close                 RM0.335 [7/3/08]


                                Avg Daily Volume (3 mths)            922,053                    KLCI

                                                                                Bridging valuation gap…
Corporate Profile   Offers not only high-end development in KL...

                     Core Business – Property Development
                                     Serviced Residences
                    • Premium development with full
                      facilities in the heart of KL city
                      (Jln Aman)
                    • Tower 1 (168 units) and Tower 2
                      (215 units) on 1.42acres freehold
                    • Apartment size: 592sf to 4,983sf

                                        Units      GDV
                       Tower 1             168        130
                       Tower 2             215        230
                                                                    Bridging valuation gap…
                    …but also affordable products in mixed township
                    development for the masses...
Corporate Profile
                     Core Business – Property Development (cont)

                     • BTP, located in Rawang, is
                       positioned to be an Integrated
                       Northern Urban Regional Center
                     • RM4 billion-GDV development
                       project on 2,670-acre leasehold
                     • 5 distinct corridors: Value,
                       Quality, Business, Recreation, and

                                                                Bridging valuation gap…
                    Increasingly more institutional ‘value’ investors… high
                    free float level ensures ample trading liquidity..
Corporate Profile
                     Major Shareholder
                                                         No of Shares                 %
                                                      (incl. indirect interest)
                     Low Family                              230.445               32.44
                     Free Float                              463.861               65.30
                     Treasury Shares                          16.035                2.26

                     • Institutional shareholders include:
                        – Foreign funds: QVT Fund LP, CIM Global Property Fund,
                          Alexandra Global Master Fund, Deutsche Bank, Morgan Stanley &
                          Co International, Merrill Lynch International, DFA Emerging
                          Markets Fund
                        – Local funds: Skim Amanah Saham Bumiputera, LTAT, Ministry of
                          Finance, PNB
                                                                                  Bridging valuation gap…
Financial Highlights
                       Increased sale of better-margin products, thanks to
Financial Highlights
                        FY07 Income Statement
                        RM’000                                4Q07               4Q06               FY07                FY06

                        Revenue                              13,722               676              32,828               9,429
                        Gross Profit                           731               5,300              9,165               5,439
                        (Loss)/Profit before                (21,049)             1,209            (32,989)             (16,612)
                        (Loss)/Profit after tax             (12,695)             9,085            (35,128)             (8,026)
                        Profit/(Loss) from                     535              (8,079)            19,560          (25,510)1
                        (Loss)/Profit for period            (12,160)             1,006            (15,568)             (33,536)
                       1.   FY06 loss from discontinued operations was mainly due to the RM23 mil impairment in value of the City
                            Square Center investment property
                       2.   An interim dividend of 1%, or 0.73 sen/share, less 27% income tax paid on 28 August 2007

                                                                                                                Bridging valuation gap…
                       Revenue recognition of property sales speeding up as
                       construction accelerated…
Financial Highlights
                        FY07 Revenue Segmentation (continuing operations)
                                                Golf Club and

                                                        FY07 Group
                                                       RM32.8 million


                                                        Revenue (RM’000)             Growth
                                                     FY07                    FY06
                         Property Development      28,160                    3,878    >100%
                         Property Investment         250                     500     (50.0%)
                         Golf Club & Others         4,418                    5,051   (12.5%)
                                                   32,828                    9,429    >100%
                                                                                     Bridging valuation gap…
                       A ‘clean bill’ balance sheet… high flexibility for
                       expansion in core business and other opportunities
Financial Highlights
                        FY07 Balance Sheet              (Highlights)
                        (RM ‘000)                                As at          As at
                                                              31 Dec 2007   31 Dec 2006
                        Shareholders‟ Fund                      704,682       732,100

                        Gross Borrowings                         5,021        358,802
                        Less: Cash & Cash Equivalents           158,638       27,544
                        Net Borrowings                         Net cash       331,258

                        Gearing                                Net cash        0.45

                        Net Current Assets                      378,317       142,392

                                                                                Bridging valuation gap…
                       Value unlocked with sale of investment property…
Financial Highlights
                        Financial Impact from Divestment of City Square
                        • On 15 Aug 2006, the Group entered into a conditional S&P Agreement to dispose
                          of City Square Center (comprising City Square Shopping Complex, Crown
                          Princess Hotel KL, and the Empire Tower) for RM680 million.
                        • The disposal was completed on 15 June 2007, with utilization status as below:

                         Repayment of bank borrowings and interest                       0
                         Expenses of the disposal                                      18.47
                         Working capital                                               19.77
                         Allocation for other investments                             151.62

                        • Divestment resulted in healthy and expansion-ready balance sheet

                                                                                         Bridging valuation gap…
FY07 Operations Review
                    Accelerating construction of MyHabitat to positively
                    impact the bottom line in FY2008 and FY2009…
Operations Review
                    Property Sales (units booked/sold)

                    MyHabitat – Tower 1     FY2007       FY2006           % Chg

                    Gross Sales Value            54.90        17.69          >100%
                    (RM ‘mil)
                    No of Units                     87             27        >100%
                    Average selling price          716            575        24.5%
                    per sq ft (RM)

                    As at 31 December 2007, take up rate at 86%

                                                                        Bridging valuation gap…
                     Further development in BTP amenities to spur sale
Operations Review
                    Property Sales (units booked/sold)

                                                           FY2007             FY2006             % Chg
                     Bandar Tasik Puteri
                        Residential (units)                          88                54                63.0
                        Commercial (units)                            0                3                 n/m
                     Gross Sales Value (RM’000)                  34,415           17,950                 91.7

                    • To date, the township was                                  Acreage          GDV
                      further enhanced with                                                     (RM’mil)
                      community living amenities,     Total available land        2,670.0              4,096
                      e.g. additional access roads,   area
                      a mosque, schools, a college,   Total launched todate       1,120.0               1096
                      and the completion of           Total under planning:       1,500.0              3,000
                      further 9-hole golf course

                                                                                            Bridging valuation gap…
Market Outlook
Malaysia Property Market    Initiatives to further boost the sector…
                                                                    Residential property transactions by value
                           • New EPF scheme allows 30%                             (1991-2006)

                             monthly withdrawals to finance
                             housing loan installments
                              – Scheme to free up to RM9.6bil
                                annually, assuming utilization by
                                all 5.4mil EPF contributors
                              – Homebuyers can afford more
                                expensive houses than before
                              – Expected to increase home
                                ownership rate (2006: 67%)           Affordability before and after utilization
                              – RM9.6 bil exceeds RM4.2 bil worth          of EPF monthly withdrawals

                                of residential property stock
                                overhang in Malaysia

                           • Elimination of Real Property Gains
                              – To encourage property investment

                                                                                                Bridging valuation gap…
Market Outlook   Optimistic outlook for the Malaysian economy…

                 • Malaysia recorded 7.4% GDP growth in 4Q07, and
                   6.3% growth in 2007
                    – Construction sector grew 4.7% in 4Q07
                    – Backed by a stronger services sector; i.e. greater activity in
                      business and finance services, and a more robust tourism sector

                 • Implementation of the Ninth Malaysia Plan (9MP) projects
                   gathering steam
                    – Construction of public infrastructure and initiatives to improve
                      public services delivery anticipated to improve consumer and
                      business sentiments

                 • The EPF withdrawal scheme would increase households‟
                   disposable income levels

                                                                              Bridging valuation gap…
Market Outlook   Demographic trends bode well for house-buying…
                 • Relatively young population in Malaysia augurs well for purchases of
                   long-term residential property
                    – Median population age of 23 years old indicates strong target market for
                      first-time homebuyers
                    – 32% of M‟sia‟s 25.3mil population is aged between 20 to 39 years old; ripe
                      segment for first time buyers and upgraders

                 • Rate of urbanization expected to accelerate
                    – 9MP expects 63.8% of the population to be living in urban areas by 2010

                 • Greater evidence of discerning demand for “pocket developments” of
                   niche and high-end property
                    – Concept of “city living” an attractive proposition; evidenced by the large
                      number of city-based property launches

                                                                                     Bridging valuation gap…
Growth Strategies
Growth Strategies   Integrated business strategy for the long-term…

                                             MyHabitat: High-end residences
                                                BTP: Affordable housing

                                               Japan              China
                                        Mixed Property        Mixed Property
                                         Development           Development
                       Oil Palm Plantation

                                                                               Bridging valuation gap…
                      Venturing into property development abroad to
Latest Developments   realize high-growth prospects…
                      Property Development in Changshu, China
                      • To undertake mixed development on 65,421 sq m land in Changshu
                      • Land purchased for RMB 99.1 million
                        (~RM46 million)
                         - Mixed development comprises:
                             70% commercial properties –
                              Retail outlets, SOHO units
                             30% residential properties –
                              High-end and mid-range
                         - Project GDV: RMB840 million
                           (RM390 million)
                         - Quick turnaround of 3 to 4 years
                      • First project to enable APLand gain
                                                                Changshu is located 72km from Shanghai and
                        initial presence in China‟s growing                  43km from Suzhou
                        property development sector
                         – Aims to strengthen its foothold in
                            the long-run
                                                                                          Bridging valuation gap…
Latest Developments   Well-placed in growth catchment area…

                      Snapshot of Changshu, China
                      • Ranked No. 2 in China‟s top 100 national counties
                      • >300 Foreign Invested Enterprises, with FDI exceeding USD3 billion
                      • Population of 1.05 million people; with growing expatriate community
                                                                    • Evidence of growth in
                                                                      China‟s „Tier Two‟ cities
                                                                    • Mixed development is
                                                                      ideal for a growing
                                                                    • Procured land located
                                                                      next to facilities of
                                                                      Foxconn Technology and
                                                                      Toyota, as well as the
                                                                      new Government
                                                                      Administrative Centre

                                                                                        Bridging valuation gap…
                      Proposed development in Japan to cater to
Latest Developments   international tourists…
                      Property Development in Hokkaido, Japan
                      • 3,082 sq m land located within Niseko Ski Resort purchased for
                        579.5 million yen (~RM18.9 million)
                      • To build 40 units of high-end apartments for sale
                         - Project GDV: RM140 mil
                         - Quick turnaround of 2 to 3 years, targeted for completion in 2009
                         - Building is within walking distance (?? m) to the ski lifts

                         - (to insert location map to show where acquired land is within the
                           ski resort)

                                                                                   Bridging valuation gap…
                      International repute of Sapporo to see ready
Latest Developments   demand for the property development…
                      Snapshot of Sapporo city in Hokkaido, Japan
                      • Sapporo is the capital of Hokkaido, and the fifth largest city in Japan
                         – Population of 2 million; hosted the Olympic Winter Games in 1972
                         – Besides its winter-related destinations, other attractions include:
                              • Shiroi Koibito Chocolate Park: Chocolate factory, shop and museum
                              • Sapporo Beer Museum: Museum of Sapporo Beer Breweries

                      • Niseko is the biggest and leading ski resort in Sapporo
                         – Attracts >2 million visitors from Japan and across the world
                         – A year-round attraction for tourists from Australia, Hong Kong and
                           Europe, due to:
                             • Long ski season (November-April) in deep powder snow
                             • Other activities during off-ski season: Hiking, canoeing, rafting
                         – Hosts the annual Sapporo Snow Festival featuring spectacular snow
                           and ice sculptures

                                                                                        Bridging valuation gap…
                      Exposure into plantation sector to broaden
Latest Developments   Group’s long-term recurring income base…
                      Oil Palm Plantation in Indonesia
                                        • Acquired 36,000 ha for Rp. 85.5 bil (~RM32.4mil)
                                           – Intend to cultivate oil palm in East Kalimantan,
                                             for which it has obtained the location permit,
                                             and will be obtaining 35-year lease title.
                                           – Land cost (36,000 ha): USD8.5 mil (~RM29.6 mil)

                                        • Upon undertaking land preparation and purchase of
                                          seedlings, the Company is to plant fast-yielding oil
                                          palm progressively with targeted up to 10,000 ha
                                          per year
                                           – Expected to reap first revenue in Year 3
                                           – Total investment for planting and land cost:
                                             ~RM400 mil over 5 years
                                        • Acquisition to broaden the Group‟s long-term
                                          recurring income base and mitigate cyclical risk

                                                                               Bridging valuation gap…
Investment Merits
                    MyHabitat to turn the Group around… FY08 and FY09
Investment Merits   to see earnings growth and enhanced margins…
                    New Residential Project Launch (1H08)
                    Project                 Type       Units       GDV
                    MyHabitat - Tower 2     Serviced       215             230

                                                                 Bridging valuation gap…
                    AP Land, an investment with potential capital
Investment Merits   appreciation in the medium term…
                    • Earnings Prospects
                                                   Revenue Growth




                                          FY2006   FY2007           FY2008   FY2009

                    • Valuation yet to be fully appreciated
                       – Currently more than 50% discount to book NTA per share (as at 31 Dec 2007)

                    • Local growth drivers
                       – High-end residential property demand augurs well for myHabitat
                       – Enough land bank in BTP to last for at least the next ten years

                    • Overseas foray
                       – Oil palm plantation to provide recurring income from FY2010
                       – Maiden projects in China and Japan, with quick turnaround, to elevate the
                         Group to be a regional property developer

                                                                                      Bridging valuation gap…
                       Thank You

IR Contacts:   LEE Swee Chan ( / 03-2163 1200)

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