NLG - The Akari project leads profit for 2021
We believe that the gradual improvement in sales performance from Q4 2021-2022 will help NLG maintain 27% NPAT growth in 2021-2023. Specifically, we estimate 2022 revenue to reach VND 5,506 bn (+22% YoY) and NPAT of VND 1,056 bn (-2.7%), mainly contributed by Izumi and Can Tho projects. The recognition of low-rise and land plot products in these two projects will help NLG improve its gross profit margin to 40%. In 2023, the recognition at the Izumi, Can Tho, Hai Phong projects and the profits from the joint venture companies of the Southgate and Mizuki projects helped the company reach revenue of VND 7,932 bn (+44% YoY) and NPAT of VND 1,750 bn (+66% YoY).
Using the RNAV method, we set a target price for NLG of VND 46,500/share. We recommend ACCUMULATE with a total return of 8% (including a 3.4% dividend yield) at the closing price on October 13, 2021.
Nam Long Investment Corporation is a Vietnam-based company engaged in the real estate operations and development industry. The Company mainly operates in five segments. The sales of projects and apartments segment refers to the development of land and urban infrastructures, as well as the development of apartment buildings and villas. The construction segment involves the construction of urban infrastructures, residential zones and the construction of Nam Long-branded houses. The leasing of investment properties segment relates to the leasing of office buildings and commercial centers owned by the Company. The service rendering segment comprises real estate brokerage services. The other activities segment refer to other activities carried out by the Company's subsidiaries and affiliate. The Company has nine subsidiaries and one affiliate.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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