In the Nam Long Analysis meeting day on 19th, Dec 2018 at Ho Chi Minh Stock Exchange, Nam Long Investment Corporation (HOSE: NLG) ‘s 2018 revenue report was published with the estimated numbers of its total and net profit were 3.514 billion VND and 704 billion VND accordingly as well as the NLG’s goal became one of the top township developers in Vietnam who possessed large-scale projects with complete real estate ecosystem based on international standards.
In the Nam Long Analysis meeting day on 19th, Dec 2018 at Ho Chi Minh Stock Exchange, the representative of Nam Long Investment Corporation ((HOSE: NLG) informed the estimated general profit of Nam Long in the last 2018 was about 3.514 billion VND, and 704 billion VND net profit among that belong to its parent corporation’s stakeholders. The set goal of the group is to achieve 850 – 900 billion VND net profit in 2019 and 1.100 billion VND in 2020 besides maintaining 20%-30% annual growth rate and low debt interest rate. Aforementioned plans are all reasonable due to the fact that the current quantity supplied of Nam Long product is not enough to meet the demand of its customers. The number of customers showing their interest in Akari City project typically exemplifies this reality. While the total expected number of apartment to be introduced to the market in the fourth quarter of 2018 was only 950 units meanwhile the project captivated a total of 2.506 customers, which is 3 times higher the number that we could supply for our first 3 blocks. Therefore, Nam Long decided to delay the sales opening time to upgrade the project’s design; then, in the second - third quarter of 2019, the market would be provided with 1.800 apartments in this first batch once. For South Gate – Waterpoint Township project, NLG also plans to put it on sales in the second quarter of 2019.
For the 2019 – 2021 period, development plan of NLG still focus on 3 main aspects, including:
- Developing township projects with a complete ecosystem (Mizuki Park 26ha, Akari City 8,5ha , Southgate 165 ha – The 1st period of Water point Township 355ha)
- Increasing the land fund for township development to 250 ha which is of not only Ho Chi Minh City’s but also Can Tho’s, Dong Nai’s, Hai Phong’s, etc.
- Developing sustainably with secured financial solution. Each township would be a perfect combination of all our 3 strategic product lines: Valora, Flora and EHome/EHomeS. And among those, the group plans to promote affordable condominium of Flora, the main product line, to customers with average earnings desiring to raise their living standards by providing them with moreover 11.000 products, 3 times higher than the former period. The other two EHome/ EHomeS were also expected to hit the market with 4.000 apartment, and Valora’s total number is 4.800.
In addition, according to the official announcement of The Asset at www.theasset.com/awards, Nam Long also won the award for “Best Bond” of Vietnam capital market in Best Deals - Southeast Asia which was assessed on the basis of the successful transaction results of Nam Long’s first bond release on 19/06/2018. Thanks to the payment guarantee support from GuarantCo, a service company under the Private Infrastructure Development Group (PIDG), and the collaboration with Standard Chartered Vietnam, Nam Long Group’s bond successfully raised 660 billion VND due in 2025 with the annual interest rate at 6,5%. Nam Long was also the first organization to issue its corporate bonds as VND-denominated bonds guaranteed by an international financial institution to diversify funding sources. That was a strong contribution to the development of our domestic bond market. And also, this equiped NLG with strong financial ability to afford both capital expenditures and sources required to invest in the urban development, and once again, the ability to raise cheap capital and maintain extremely low debt rate in comparison with others in the same sector of Nam Long Group was strongly proved once again.