• Mizuki and Akari in HCMC and Water point in Long An are the key projects for next year since phase 1 were very successfully lauched with high absorbtion rate;
• In Q2 2021, NLG’s revenue was 400 billion VND (+65% y-o-y) while gross profit was 116.2 billion VND (-16% y-o-y). NPAT was 48.1 billion VND (-29% y-o-y)
• The demand for Nam Long product has been high due to the reasonable selling price and trusted brand;
• Demand in HCMC market are high. Housing price is pushing up high compared to 2019
• NLG is owning 681 ha of landbank for 2021-2025 development.

Risk

• License granting has been not yet improved this year;
• Cyclicity and credit tightening are burden on growth.
• Impact of Covid-19 and new wave of outbreak in May 2021, the presale is continuing to be hit, then the delivery for 2021 could be lower than expected.
• The sale of current projects slow down because of the pandemic.

Recommendation:

Using the RNAV method, we value NLG at 34,300 VND/share and we recommend Neutral recommendation for NLG stock.