CÔNG TY CỔ PHẦN ĐẦU TƯ NAM LONG (HOSE: NLG)
Số 6 Nguyễn Khắc Viện, P. Tân Phú, Quận 7, TP.HCM
Điện thoại: (84.28) 54 16 17 18
Fax: (84.28) 54 17 18 19
At NLG Day event on November 5, Pham Dinh Huy, Director of Nam Long Investment Department (HoSE: NLG) said that the company has finished negotiating the acquisition of 2 land plots in East HCMC (District 9, Thu Duc). At a time when the shortage of land in HCMC market is making M&A difficult, Nam Long successfully closed deals on more than 100 hectares of land, which will be processed in 2020 - 2021. The value of each project is approximately VND 2,000 billion, Huy said.
Nam Long’s existing land fund of 681 hectares. Source: NLG
Nam Long has set a VND 987 billion profit before tax this year, including VND 725 billion from financial activities, accounting for 73% of the total profit. This amount will come from the capital transfers of 2 projects Dong Nai Waterfront (170 ha, Dong Nai) and Paragon Dai Phuoc (45 ha, Dong Nai). Regarding Dong Nai Waterfront, the company has signed an agreement to transfer its shares to Japanese partner. The Board of Directors is confident to complete the transaction within this year. . Updating these two projects, with Dong Nai Waterfront, the company has signed a capital transfer cooperation agreement with a Japanese partner, the Board of Directors is confident to complete the deal this year. Japanese partner has deposited the money so what remains is updating ownership registration with the Department of Planning and Investment. The capital transfer at Dong Nai Waterfront is expected to return VND 490 billion after-tax, so the success of this transaction plays an essential role in this year's planning.
Regarding Paragon Dai Phuoc, many stakeholders have initiated negotiations. However, the management board is still considering between selling and executing on its own since Nam Long has many ongoing projects with a large volume of products (5,000 products at Akari, Mizuki and 3,000 products at South Gate).
Nguyen Thanh Son, Nam Long’s Managing Director, shared that projects are progressed timely as committed. Indeed, Akari City Phase 1 had a roof topping a month ago and will be handed over in Q3/2021. Phase 2 of the project will be started and open for sale next year.
Akari City’s progress updated in September. Photo: Investor
With regards to Mizuki Park (Binh Chanh, Ho Chi Minh City), 720 units will be offered for sale in November while new phases will commence construction in December and open for sale in the next 2 years. For South Gate (or phase 1 of Waterpoint Long An project), the company plans to deliver the first products in Q4 this year. 420 units of Dong Nai Waterfront Phase 1 will also open sale next year.
Commenting on the sales activities, Nguyen Quang Minh, Director of Sales & Marketing confirmed that the demand for Nam Long’s product is quite high. For example, when South Gate was opened for sale in July, the number of customers deposited for the rights of purchase was 5 times higher than the number of products. In Mizuki Park’s upcoming sale this November, although Nam Long has limited the rights of purchase for each customer at 2, the total has already exceeded the number of products by 3 times.
Many people questioned Nam Long’s strategy to remain in the West, especially in Binh Tan, Binh Chanh and Long An, while others are flocking to the East. Quang explained that there is always a targeted group in the market. If the East areas are overcrowded with many investors sharing a piece of cake, Nam Long is the only township developed in the West and Long And. Nam Long’s products suit people from Mekong Delta and Long An, or people doing business elsewhere but look to buy villa and garden houses in the areas for easy travel to work. Within 30 - 40 minutes, housebuyers can go from Nam Long's township to Ho Chi Minh City or industrial zones in Long An. This is the reason why they cannot buy houses in District 9 or Dong Nai, the current hypes on social media.
Chau Quang Phuc, Director of Finance and Accounting Department, believed that Nam Long will deliver products on time and the sales value will exceed the projected number. Therefore the company is confident in achieving revenue and profit planning for this year and a 20% growth rate in the following year.
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