Nam Long targets 26 per cent increase in net profit in 2019

 HCM CITY — Property developer Nam Long Investment Corporation has set itself a net profit target of VNĐ956 billion (US$41.2 million) this year, a year-on-year increase of 26 per cent.
Its recently announced business plan for 2019 targets revenues of VNĐ3.485 trillion and earnings per share (EPS) of VNĐ3,699 and after-tax profit of VNĐ1.002 trillion.
Notably, this year the company will develop new projects on its new land holdings of over 200ha, setting the tone for continuing to achieve high growth in the coming years.
According to a report on 2018 by securities company SSI Securities Corporation, the property industry led profit growth with a rate of 75 per cent, mainly driven by a sudden increase in profit for VHM. 
The profit growth ex-VHM was only 22.8 per cent. 
Nam Long’s net profit reached VNĐ761 billion, up 42 per cent from the previous year. This level of profit was achieved though NLG only sold 130ha of its Waterpoint project and not 165ha as planned.
 nam long group
Regarding the net profit target for this year of VNĐ956 billion, an increase of VNĐ195 billion, the company said when businesses grow large, maintaining a growth rate of nearly 30 per cent is really a challenge.

Waterpoint project in Long An Province with a thumb image from feng shui promises to boost the Long An real estate market.

During the annual general meeting season this year listed real estate enterprises set profit targets that were lower than in or unchanged from 2018, reflecting their caution about the difficulties facing the real estate business environment in HCM City this year.

With the generally accepted difficulties in the market, investors are wondering what Nam Long will do to maintain its double-digit growth rate in the upcoming years.
The corporation is preparing for an event at the end of this month to announce its township development and market expansion strategies.
It will also announce its 200ha of new lands to emphasise its competitive advantages and the fact it can develop not just small-scale real estate projects but also projects of township scale with dozens to hundreds of hectares with facilities inside them.
Nam Long has always been a saviour of the market during its slumps by launching affordable products like it did in the 2008-12 period, when it helped revive the market.

Investors and customers are waiting to see “what special next” NLG will launch as the market shows signs of slowing. Will Nam Long help prop up the market one more time?

Source: Vnnews