Nam Long unveils business plans for 2020

Four days after successfully organising its annual general meeting online and collecting shareholders’ votes sent by post, Nam Long Group (HOSE: NLG) today announced the outcome of the latter.

By a large majority, the annual report, along with profit distribution and dividend payment plans for 2019 and 2020, was approved.

Nam Long launched three townships, Mizuki, Akari and Waterpoint, last year, and their pre-sales had been worth over VNĐ5 trillion (US$213.6 million), which placed the company in the top tier in the southern region’s housing market.

It also handed over more than 3,000 units of its EHome and Flora product lines at its townships and set up a project development and sales apparatus in Hà Nội and Hải Phòng.

By the end of 2019 its financial indicators achieved impressive growth compared to five years ago. 

Its assets are worth VNĐ10.904 trillion ($465.09 million) after increasing by 14 per cent, and profit after tax was VNĐ961 billion ($40.9 million), up 26 per cent. 

It had cash, cash equivalents and bank deposits of VNĐ1.966 trillion $83.4 million), ensuring it maintained a solid financial foundation and without the pressure of debts. NLG has 681ha of land in the key southern provinces and cities such as HCM City, Đồng Nai, Long An, Bình Dương, and Cần Thơ, and Hải Phòng. 

Dividends for 2019 include 10 per cent in cash comprising a payout of VNĐ239.14 billion and 10 per cent in shares. Of this, 5 per cent in cash was paid last December, and the rest will be paid this quarter.

Shareholders also approved putting off a bonus issue of 10 per cent to a suitable time. Identifying that 2020 will be a challenging year due to the impact of the Covid-19 pandemic, Nam Long's board of directors and management have envisaged three market scenarios to ensure operations are sustained and the company is ready to achieve a breakthrough development after the crisis ends.

In the most conservative scenario, Nam Long has a sales target of VNĐ6.351 trillion ($271.9 million) for 2020, a year-on-year increase of 317 per cent, revenues of VNĐ1.52 trillion ($65.09 million) and profits of VNĐ820 billion ($35.1 million) from its core business activities such as developing townships and housing.

It plans developments on 40 per cent of its 113 hectares of commercial housing lands to complete a comprehensive commercial real estate eco-system, thereby creating value addition for its township projects as well as a regular and steady income stream. Nam Long plans to set aside a sum of VNĐ500 billion to VNĐ1 trillion to acquire 10-20ha of unencumbered land to develop various product lines for different customer segments under its EHome/ EHomeS and Flora affordable housing projects, Valora villas/ townhouses and townships with completed property eco-systems.

The meeting also approved plans to distribute profits for 2020 with a dividend payout of 15 per cent (10 per cent in cash and 5 per cent in shares).  In 2018-2022 it targets sales of over 19,500 units and total revenues of over VNĐ40 trillion from Nam Long Investment Corporation and joint-venture companies in which Nam Long is a partner. Their total profit target is VNĐ9 trillion. Based on its impressive pre-sales results, Nam Long expects high revenues and profit in 2021 – 2022.

In its financial report for the first quarter of the year announced recently, Nam Long said net revenues topped VNĐ416 billion, a year-on-year increase of over 25 per cent. 

Its net profit was VNĐ130 billion, 600 per cent up the same period last year.   Total assets were worth VNĐ10.931 billion, VNĐ26 billion higher than at the beginning of the year. 

On March 28 Nam Long began a new sales method on a trial basis: online sales for its dual key products at Akari City. It achieved revenues of nearly VNĐ100 billion in just 10 days. In addition to business, NLG also engages in social activities such as granting the annual “Swing for dream” scholarships to poor students and supporting the national housing development programme by developing the EHomeS social housing product line. It has created a strong corporate culture with consultancy from the US’s Vanto Group. NLG won many awards and titles last year.It was named among the Top 50 most valuable brands in Việt Nam(Brand Finance), Việt Nam’s 50 Best Listed Companies (Forbes) and Vietnam's 50 Best Performing Companies (Investment Bridge) and won international awards for its projects and exchanges at the International Property Awards.

(Source: Nam Long Group (Hose: NLG))