NAM LONG INVESTMENT CORPORATION

The subject is the parent company of the Nam Long Group, a group with over 30 years of experience in real estate development in Vietnam operating with the "Business Units" model including 3 main business areas: land fund development, urban and housing development, commercial real estate and venture capital. The subject is listed on HOSE with code "NLG". NLG has a clean land fund ready to develop more than 681 hectares; 3 reasonably priced product lines EHome, Flora, Valora. The list of international shareholders and strategic partners who have been cooperating with NLG includes many big names such as Nam Viet Ltd. (part of Goldman Sachs), IFC (member of Worldbank), Ibeworth (Keppel Land Corporation), Mekong Capital, Nishitetsu, Hankyu Hanshin (2 Japanese corporations with more than 100 years of development) ... with financial management support and real estate development experience. NLG's large-scale integrated urban areas are developing: Waterpoint 355 hectares; Izumi City 170 hectares; Nam Long II Central Lake Can Tho 43 hectares; Mizuki Park 26 hectares.

NLG is one of the few real estate companies rated positively by investors as well as stock analysis companies in the context of a frozen real estate market from 2022 to the present.

In January 2024, Vietcombank Securities commented that NLG is an investor developing real estate projects in the affordable segment, suitable for real housing needs. NLG's projects completed legal procedures and are reaching the construction and sales phase. Furthermore, NLG's projects are all clean land funds so it will not be much affected when the new Land Law is passed. Obstacles related to the transfer of 25% of capital at the Paragon Dai Phuoc project to partners are mainly related to the conditions of the Law on Real Estate Business 2023. In terms of financial capacity, although the real estate market faced many difficulties in 2023 but NLG still recorded sales of more than VND 3,000 billion. The ratio of net debt to total assets is at the lowest level in the industry. 

ACB Securities also gave a "positive" recommendation for NLG with forecasts of strong growth in business results in 2024 thanks to the handover of nearly completed projects and recording a transfer transaction of 25% of capital in Paragon Dai Phuoc.

Agriseco Snapshot also expects NLG to continue to maintain its potential in the medium and long term thanks to the large clean land fund being sold with progress and positive absorption rate; social and affordable housing projects will be the driving force to promote business in the context that real housing demand continues to increase and supply is scarce in the southern provinces. Nam Long will continue to develop further about 5 social housing projects in the future while developing urban areas integrating surrounding amenities. These will be the driving forces to help NLG grow sustainably. Agriseco Snapshot recommends continuing to hold NLG shares with a target price of VND 43,000/share (upside 10% compared to the current price).