Nam Long Group (HOSE: NLG) | Q1 2025 Update, BUY– 1Y Upside +28.5%.

NLG has a solid quarter with strong revenue and earnings thanks to the handovers at Akari City Phase 2 and Central Lake Can Tho 2  despite the typical slowdown during the Lunar New Year holiday.

Q1/2025 FINANCIALS

o       Revenue: VND 1,291 bn (+530.9% YoY)

o       PBT:  VND 142 bn  (from a loss of VND 47bn in Q1/24)

o       NPAT-MI: VND 108 bn (from a loss of VND 77bn in Q1/24)

As of 21 April 2025, NLG has already secured a presale of VND 2,576 billion, of which Southgate was the key revenue driver, contributing VND 2,126 billion, or approximately 82.5% of the total presales. This demonstrated a strong recovery of Long An real estate market thanks to the acceleration of Ring Road 3 in Long An, along with the launch of nearby projects such as Eco Retreat, which raised overall interests from investors for this region.

Revenue from NLG in Q1/2025 was primarily contributed by handovers of 153 units at Akari City (Phase 2), 70 land lots and 305 EhomeS units in Can Tho projects. Revenue in Q1/2025 achieved 21.4% of our full-year forecast and 19.0% of management’s guidance. NPAT-MI reached 15.3% of our projection and 15.4% of the company’s target. The lower NPAT-MI in Q1/2025 was due to typically lower margin from high-rise units at Akari City.

We maintain our BUY rating on NLG with a 12-month target price of VND 43,500 per share, implying an upside of 28.5%. The NLG stock has gained 6.8% since our initiation