The transformation of Nam Long

Nam Long Group surprised public by announcing its plan to develop a series of township project with a land fund of over 600 hectares. 
While many real estate companies are struggling to overcome difficulties and develop new projects, Nam Long Group made a surprise announcement of its plan to develop a series of township projects with total land fund of more than 600 hectares. This is Nam Long’s first step in upcoming period of accelerating development.

Solid foundation

In 2018, although the real estate market began to adjust after a long period of fast growth, Nam Long still maintained a very high growth rate. The planned projects took place according to plan, enhancing operational stability. 
Specifically, in 2018, Nam Long sold 3,272 products, including 162 townhouses / villas, 1,776 Flora condominiums, 1,112 apartments EHome / EHomeS and 222 land plots. In addition, Nam Long’s sales revenue increased by 25%, from VND 4,138 billion in 2017 to VND 5,156 billion in 2018. Group revenue increased by 101%, from VND 3,161 billion in 2017 to VND 3,480 billion in 2018. Profit after-tax of parent company increased by 43%, from VND 535 billion in 2017 to VND 763 billion in 2018, which is 124% of what was planned.

2018 is the year of continuous success for the partnership between Nam Long and two Japanese investors, Hankyu Hanshin and Nishitesu, in major township projects, including 8,5-hectare Akari City and 165-hectare Waterpoint phase 1. This partnership has not only given Nam Long great financial potential but also helped improve their project management model and approach advanced international standards in real estate development...

Chairman of Nam Long, Nguyen Xuan Quang, said the success of 2018 is a solid foundation for Nam Long to confidently move to the acceleration phase. "In this period, Nam Long will focus on developing major townships based international standards, modern infrastructure and adequate utility systems to increase the value for house owners and contribute to the national housing strategy, "Quang emphasized. 

To implement this strategy, at the end of March, Nam Long announced three new mega projects including Nam Long Waterfront township (170 hectares in Bien Hoa, Dong Nai), Nam Long Dai Phuoc township (45 hectares in Nhon Trach, Dong Nai) and Nam Long Hai Phong township with 21 hectares. These land funds have been recently acquired by Nam Long. Additionally, Nam Long continued to launch 26-hectare Mizuki Park in Saigon South, 8,5-hectare Akari City  in Binh Tan and 355-hectare Waterpoint in Long An (165 hectares in phase 1). They are expected to bring Nam Long a big and stable source of revenue in upcoming years.

New anchors

One of Nam Long's most important goals is to be a leading township developer in Vietnam which is best in understanding and satisfying customers. Accordingly, Nam Long will expand the market to key cities such as Hanoi - Quang Ninh - Hai Phong in the North and Ho Chi Minh City - Dong Nai - Long An in the South. Nam Long’s township will include popular product lines catering to a variety of low to high needs, such as affordable apartments EHome, affordable condominium Flora, Valora townhouses/ villas and new types of product including commercial real estate, schools, hospitals, serviced-entertainment, complexes, offices...

In the period of 2019-2021, Nam Long set objectives to increase number of products by four times and number of deliveries by three times compared to the period of 2015-2018. This is equivalent to building nearly 26,000 more products and delivering over 16,000 EHome, Flora and Valora products.

Besides, Nam Long will cooperate with secondary investors to develop component projects. This means that the company will have additional products as well as ensure that the project development happens as planned and increase the profit for shareholders. 

Another anchor of Nam Long in the period of 2019-2021 is investing in commercial and service real estate. Nam Long currently owns more than 700,000 m2 of land for commercial – service use. In 2019, the company will breakdown this land fund for different uses from leasing to attract customers to selling and co-developing. This will help increase the value of the township, boost sales and sustain the growth.

In addition, Nam Long also plans to make profit from its subsidiaries. Nam Long ADC specializes in EHome development; Nam Long PMD specializes in investment and development of commercial and service real estate; Nam Khang specializes in construction. These companies are expected to grow by 25 to 30% per year. Considering this positive move, Bao Viet Securities Company (BVS) recently valued Nam Long’s stock (NLG) as one of a few potentially profitable real-estate stocks in 2019. 

(Source: Vietnamnet)