Nam Long recorded positive sales in the first 9 months

NLG's total contract value in the first 9 months of 2020 soaked to VND 3,300 billion, up by 23% over the same period of last year. The yearly profit is projected to reach VND 1,421 billion, up 48% compared to 2019.

The perspective drawing of Nam Long’s Flora Mizuki phase 1 - Mizuki Park township (26ha, Binh Chanh)

Nam Long Group has just released its Q3/2020 consolidated financial statements with revenue of VND 683 billion, increasing by 74% over the same period of last year; however, the net profit was only VND 28.3 billion.

Nam Long explained that Q3/2020 revenue increased significantly as the company completed the transfer of real estate under Tan Thuan Dong project and earned 246 billion (accounting for 38% of total revenue). The rest is made of VND 43 billion from apartments, villas, land handovers (accounting for 6% of revenue) and VND 344 billion from general contractor services, construction (accounting for 54%). The sharp drop in net profit is due to the handover progress of the Mizuki Park Phase 1 project (unincorporated project) and Flora Novia has been partially moved to Q4/2020.

In the first 9 months, the company recorded an accumulated revenue of VND 1.342 billion, net profit of VND 208 billion (with a low Q3/2020 at VND 28.3 billion). During the period, revenue from real estate increased significantly due to land sales in Tan Thuan Dong. The company continued to make a profit from the sales of 73 properties in Flora Novia, Nguyen Son and EHomeS. 

Also in Q3, Nam Long Group launched many remarkable products. Specifically, in July 2020, the company introduced phase 1 of Waterpoint township (355 ha, Ben Luc, Long An) which consists of 500 villas, townhouses, etc. with a total value of VND 2.000 billion. 

In August 2020, within the first day of the FLora Mizuki MP6-MP7-MP7 launch, 1200 registrations were received for Mizuki Housing Savings Program 2020, doubling the number of 600 Flora apartments Nam Long expected to supply. 

In the same month, Akari City phase 1 (8.5 ha Vo Van Kiet, Binh Tan) had an official roof topping after 11 months of construction, exceeding the schedule by 2 weeks despite Covid-19. The handover is planned to happen in Q3/2021. From mid-September, Nam Long has offered for sale the last apartments of phase 1. 

Up to now, the Akari project has brought back nearly VND 4,100 billion in revenue with 1,746 apartments successfully sold, in which September recorded VND 243 billion, equivalent to 100 apartments sold. In Q4/2020, NLG planned to bring to market 14 ground-floor commercial properties along the 42-meter-wide boulevard. Each unit has an average area of 400 square meters and is priced at about VND20 billion.

NLG's total sales contract value in the first 9 months of 2020 reached VND 3,300 billion, up 23% over the same period.

NLG shared that they will record profit from projects in Q4/2020, including the handover of 640 townhouses, villas from phase 1 Waterpoint (developed under the joint venture South Gate).

Also in Q4, NLG will start selling Mizuki Par phase 1 as the reserved right to purchase has doubled Nam Long’s projection i.e. 750 apartments. 

Besides, the Board of Directors also planned to sell 35% of its shares in Waterfront City to a Japanese partner, Hankyu Hanshin, in parallel with agreed sales of 50% Paragon Dai Phuoc to partners. The profit is expected to be on the book by the end of this year. 

According to VNDirect Securities, NLG's net profit in 2020 could reach VND 1,421 billion, equivalent to an increase of 48% compared to the previous year following the handover of Waterpoint project. In addition, based on the presales in 2019-2020, Nam Long’s profit point will be likely in 2021-2022 through the handover of over 3,000 products sold at Akari, Mizuki Park and Waterpoint phase 1. On the other hand, Nam Long’s 7 ongoing projects will generate about VND 9,000 billion (excluding profits of 190ha Waterpoint phase 2).

Source:  vneconomy.vn