Nam Long Investment Jsc (NLG VN)_Challenge ahead

• Q1/2022 results update. Revenue reached VND 587 billion (+249% YoY), gross profit was VND 250 billion (+623%), net profit was VND 630 mil (-99%YoY) because in Q1 2021 NLG recognized other income of VND 429 billion from revaluing asset in Izumi City.
• NLG set the guideline for revenue of VND 7,151 billion, and NPT of VND 1,206 billion. Total presale value for 2022 is set at VND 23,400 billion, equivalent to about 4,200 units.
• On the other hand, demand for housing in the South is high, which absorption rate always reach high level. Price of housing continues to go up in Q1 2022, increase 4% YoY.
• NLG finished transfer share in Paragon Dai Phuoc in 2021. VND 340 billion of profit will record in Q2 2022.

We remain the value of NLG at 34,300 VND/share using RNAV method. We recommend Neutral for NLG stock.