Company Overview

Nam Long is one of the pioneering urban developers in Vietnam, with 33 years of experience in the residential real estate sector. The company transitioned to a joint-stock company in 2005 and was officially listed on the HOSE in 2013. Nam Long started in the affordable housing segment with its well-known Ehome brand. Currently, the company focuses on developing integrated townships in satellite cities surrounding Ho Chi Minh City.

Business Performance

From 2019 to 2023, NLG's revenue primarily came from projects such as Akari City, Mizuki Park, Izumi City (Waterfront), and Southgate (Waterpoint Phase 1), with the strongest growth recorded in 2021, reaching VND 5,153 billion in revenue, up 135% YoY, driven by the handover of Akari City Phase 1. In 2024, NLG recorded revenue of VND 7,196 billion, up 126.2% YoY, with the largest contribution coming from the handover of 1,600 apartments in Akari City Phase 2. Gross profit reached VND 3,068 billion, with a gross profit margin of 42.6%. Net profit after tax and minority interest (NPAT-MI) stood at VND 512.2 billion, with an NPAT-MI margin of 7.1%.

Investment Thesis

• Nam Long has a strong position in the residential real estate sector, with 33 years of experience in the residential real estate market, the company has built a reputable brand. Nam Long also possesses a large land bank of over 680 hectares in prime locations, providing a valuable foundation for its project development plans through 2030.

• Key projects such as Izumi City, Waterpoint Phase 1, and Paragon are anticipated to proceed as planned, contributing positively to sales, revenue, and long-term profit growth during this period.
• The real estate sector is set to enter a new growth cycle starting in 2025 and will continue to drive economic expansion in the coming years.

Based on the valuation method of RNAV and P/B multiples, we recommend BUY with a target of VND 42,800/share, upside 35% from the price of VND 31,700 on Feb 17, 2025.