NLG Flash note – BUY

NAM LONG INVESTMENT CORPORATION (NLG VN)

NLG recorded impressive growth in 4Q2024 mainly driven by delivery at Akari project. We maintain our 2025 forecast and FY2025 target price at VND46,400/share. Reiterate our Buy rating for this stock given our expectation of gradual market recovery in 2025, NLG’s strong financial status and affordable and legally transparent products.

Nam Long posted an impressive growth in 4Q2024 with net revenue of VND6,369 bn (+289% YoY) and NPATMI of VND497 bn (+71% YoY) mainly thanks to deliveries of:

(1) over 1,400 condos at Akari project with revenue of nearly VND5.2 trn and; 

(2) nearly 180 units at Can Tho project with revenue of VND839 bn.

For 2024, NLG posted net revenue of VND7,196 bn (+126% YoY) and NPATMI of VND512 bn (+6% YoY), completing 101% of profit target and 96% of our forecast. The strong growth in the top line was mainly thanks to delivery of Akari and Can Tho projects in 4Q2024 while the slight growth in the bottom line was mainly due to:

(1) Lower number of landed properties delivered which normally have higher margins (20 units # VND279 bn in 2024 vs 113 units # VND1,261 bn in 2023) at Valora Southgate project led to a lower gross margin (42.6% vs 49.1%),

(2) Profit shared from associates and JVs, mainly from Mizuki project, declined by 76% YoY, to VND100 bn, and

(3) Higher minority interest (VND869 bn in 2024 vs VND317 bn in 2023) mainly recorded from Akari project.

Sales performance in 4Q2024 improved significantly compared to 3Q2024 but lower than 4Q2023 with nearly 400 units sold (+29% QoQ and -33% YoY) and presales of VND1,680 bn (+99% QoQ and -24% YoY). Can Tho project was the best seller in 4Q2024 with 178 land lots sold and presales of VND748 bn. Sales performance showed clear sign of recovery in 2024 with nearly 1,800 sold units (+73% YoY) and total presales of VND5.2 trn (+31% YoY).

NLG maintained a healthy financial position in 2024. Net debt decreased by nearly VND1.8 trn, to VND726 bn and Net debt/Equity ratio declined from 18.6% to 5.0%.

Quick comment: We keep our 2025 forecast nearly unchanged with NPATMI of VND580 bn (+13% YoY) which are mainly generated from Can Tho, Southgate and Izumi projects. Our YE2025 target price was maintained at VND46,400/share. Reiterate our Buy recommendation for this stock.