Nam Long Newsletter ir... · 2020-07-29 · July 20, 2020 NAM LONG NEWSLETTER 1 NAMLONGVN.COM “...
Transcript of Nam Long Newsletter ir... · 2020-07-29 · July 20, 2020 NAM LONG NEWSLETTER 1 NAMLONGVN.COM “...
July 20, 2020 NAM LONG NEWSLETTER
1 NAMLONGVN.COM “ Creating living environments with human values to the community"
Stock information
20th July 2020 Unit NLG
Price VND '000 25.2
Market Cap VND Billion 6,293
Outstanding Shares Shares mil 249.7
Foreign Ownership/ FOL % 48/49
52-week High/ Low VND '000 28.5/18.1
30-Day Avg. Trading Vol Share '000 1,353,693
90-Day Avg. Trading Vol Share '000 1,234,586
2020 Cash Dividend VND 1,000
2020 Stock Dividend % 5
Current 4-Quarter EPS VND 3,496
TTM PE Times 7.2
Price to Book Times 1.2
Source: Vietstock.vn
Figure 1: NLG share price chart
Source: Vietstock.vn
Figure 2: Shareholder structure – updated 7/2020
Source: Nam Long Investment Corporation
Table of Contents 1. Property Market News 2. Nam Long Investment Corporation Highlight News 3. 6M2020 Business Performance 4. 6M2020 Sales Performance
1. PROPERTY MARKET NEWS
Vietnam economy grew slowly due to the effect of Covid-19:
GDP of Vietnam in Q2.20 was estimated to increase by 0.36%
compared to same period last year, which was the lowest
growth rate of Quarter 2 in the period 2011-20. For the first 6
months, GDP reached 1.81%, which was also the lowest level of
6 months in the years 2011-20. Source: GSO
Customer Price Index: the average CPI in Q2 increased by 2.83%
over the same period last year, but decreased by 1.87%
compared to previous quarter. On average, in the first 6 months
2020, CPI increased by 4.19% y-o-y, higher than the government
target of 4%. Source: GSO
Apartment market in HCMC: the number of apartment
launched for sale in Q2/2020 was the lowest in the last 5 years,
1,644 units in 7 projects, decreased 54% q-o-q and 60% y-o-y.
In the first half of the year, there were 5,250 units for sale and
witnessed a decrease of 39% compared to same period last
year. The number of apartment sold in Quarter 2 was 1,581
units, downed 58% compared to previous quarter and 66%
compared to the same period last year.
Source: CBRE Research Report
2. NAM LONG INVESTMENT CORP. HIGHLIGHT NEWS
May 2020: In order to support sale activities and promote
Waterpoint project, Nam Long launched 2 bus routes to serve
customers and sale staffs, to travel between Waterpoint project
and Hochiminh city. These bus routes operate on Friday,
Saturday and Sunday weekly with frequency of 2 times per day.
May 15th 2020: Nam Long held a ceremony to sign a
cooperation agreement with numbers of contractors supplying
construction materials and services. This is an important step
for Nam Long in improving project development capacity to
18,136
25,200
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
Founders32%
Treasury shares
4%
Other local16%
IBEWORTH PTE.LTD
10%
PYN ELITE FUND (NON-UCITS)
7%
Foreign shareholders
31%
8,874 9,562
6,000
4,124
1,644
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Q12020
Q22020
No. of unit supply in HCMC (LHS) Absorption rate (RHS)
July 20, 2020 NAM LONG NEWSLETTER
2 NAMLONGVN.COM “ Creating living environments with human values to the community"
Figure 3: Business performance
VND billion 6M
2019 6M
2020 %
+/-
Revenue 935 658 -30%
Product Handover 722 175 -76%
Construction & General service 192 425 121%
Project transfer 11 50 359%
Property Lend 10 8 -19%
Gross profit 345 295 -14%
After-tax shareholders 265 178 -33%
% Gross profit 37% 45%
% Net margin 28% 27%
Debt/ Owner’s Equity 16% 25%
Net debt/ Owner’s Equity -16% 3% Source: Nam Long Investment Corporation
Firgure 4: Handover products
6M 2020 Units Value
(VND billion)
Flora Novia 37 63
Shophouse Nguyên Sơn 17 43
EhomeS Nam Saigon 5 4
Landlot Dalia Garden 3 9
Valora Kikyo 3 8
Landlot Long An 36ha 1 43
EhomeS Phú Hữu (lease) 4
Total 66 175 Source: Nam Long Investment Corporation
Figure 5: Handover products of JVC
6M 2020 Units Value
(VND billion)
Flora Mizuki 339 650
Valora Mizuki 8 69
Total 346 719
Source: Nam Long Investment Corporation
Figure 6: Sale performance
develop project, standardizing supply chain, ensuring consistent
quality in accordance with standards, ready for the
simultaneous development of large-scale urban areas in the
near future.
June 5th 2020: The ex-right date of 2019 second cash dividend
payment (VND 479/ share).
June 5th 2020: Nam Long was named the fifth time in the list of
50 best listed companies recognized by Forbes Vietnam.
June 24th 2020: Nam Long published the result of private
issuance of bonds worth VND 500 billion, with terms of 36
months, fixed interest rate of 10.5% per year, non-convertible,
non-warranted and secured bond. Purpose of issuance:
increase the size of working capital and implement investment
programs and projects of business.
July 5th 2020: Nam Long signed strategy cooperation agreement
with Keppel Land Mall Management Vietnam in consulting on
strategy of developing commercial land at Waterpoint project,
which not only includes housing products but also real estate
ecosystem – where real estate types such as non-residential
property, school, hospital, service- environment, complexes,
offices… are integrated, creating a quality settling community
and unique lifestyle.
July 7th 2020: Nam Long announced the establishment of Nam
Long Construction & Management Investment limited liability
company.
July 20th 2020: Nam Long announced to cease NLG share
buyback plan in 2020; reason: the stock market had changed
from initial expectation, Board of Directors decided to cease
NLG share buyback plan and will reconsider in 2021, based on
actual situation.
Expected in quarter 3/2020: Nam Long plans to pay 2019 share
dividend with a ratio of 9.57% and issues 1,674,369 shares
based on the long-term incentive policy for senior leaders in
2019.
3. 6M2020 BUSINESS PERFORMANCE
According to the Q2/2020 Consolidated Financial Statement,
Nam Long reported revenue of VND242 billion and net profit of
VND 68 billion, decreased 60% and 49% QoQ, respectively. The
decline in business performance was due to low number of
product completion as most of products at Flora Novia, Flora
Mizuki had been delivered in 2019 and Q1/2020; and Flora
Akari, Southgate project (Waterpoint Phase 1) is under
construction.
During the first six months of 2020, Nam Long handed over 412
units, worth VND 894 billion, in which, units of Mizuki project
did not recorded as consolidated revenue but only recorded as
profit from joint venture in consolidated financial statement.
Revenue from construction and service strongly increased by
July 20, 2020 NAM LONG NEWSLETTER
3 NAMLONGVN.COM “ Creating living environments with human values to the community"
6M 2020 Units Value
(VND billion)
Flora Akari 134 340
Southgate (Waterpoint GĐ.1)
186 631
Other projects 26 48
Total 346 1,019
Source: Nam Long Investment Corporation
121% to VND 425 billion, mainly came from Service Agreement,
construction at Southgate project (Waterpoint Phase 1) and
Mizuki project. Project transfer revenue was recorded when
Nam Long handed over products at Mizuki project. As of
30/06/2020, NLG’s revenue was VND 657 billion (-30% YoY) and
net profit was VND 179 billion (-33% YoY). If the products
handover from Mizuki Park has been consolidated, total
revenue would be VND1,377 billion (+47% YoY) and if excluding
other profits from the transaction of acquiring purchase of Viet
Thien Lam company (owner of Paragon Dai Phuoc project) in the
first 6 months of 2019, profit of 6 months 2020 would have
increased 42% YoY.
In the first 6 months 2020, total inventory rose more than VND
600 billion, Nam Long mainly invested in the construction of
Akari City and the infrastructure of Waterpoint 190 ha and Can
Tho 43 ha. In addition, Nam Long contributed VND 600 billion,
to rise capital of Dong Nai Waterfront City Limited Liability
Company (proportionate to Nam Long’s ownership of 70%), to
develop infrastructure at Dong Nai Waterfront project.
A positive highlight of NLG is that short-term advance from
customers was more than VND 1,712 billion, +30% YTD. This is
advance from customers who purchased apartments, vilas and
land but had not yet been handed over at the end of the
accounting period of 30/06/2020.
At the end of quarter 2/2020, the total asset of NLG was more
than VND 11,800 billion, which was VND 1,000 billion higher
than beginning of 2020’s number. The amount of cash, cash
equivalent and short-term deposits was over VND 1,400 billion.
Southgate project (Waterpoint Phase 1) is expected to be
handed over Phase 1, including 289 products in quarter 3 and
204 products in quarter 4/2020. Akari project is expected to top
out its building in quarter 3 (mid of August).
4. 6M2020 SALES PERFORMANCE
Faced with general market “clogged” by Covid-19, Nam Long
still showed prosperous business performance. Until
30/06/2020, company continued to sale Phase 1 of Flora Akari
and Southgate (Waterpoint Phase 1), with sale value of more
than VND 1,000 billion.
On the second launching of Southgate project (Waterpoint
Phase 1) on 05th July and 19th July, Nam Long sold nearly 300
products, mix of villas, semi-detached villas, shophouses and big
size villas,… with total sales value of VND 1,500 billion. As of 20th
July, 2020, total sales value of Nam Long was more than VND
2,500 billion, met 65% sales plan in term of value.
In quarter 3, NLG continues to introduce Akari and Waterpoint
projects, housing saving programs for customers who are
interested in products of Mizuki project.
July 20, 2020 NAM LONG NEWSLETTER
4 NAMLONGVN.COM “ Creating living environments with human values to the community"
STRATEIC PARTNERSHIP WITH SUPPLIERS STRATEGIC CONSULTING WITH KEPPEL LAND TO DEVELOPER COMMERCIAL LAND AT WATERPOINT
AKARI CITY PHASE 1 CONSTRUCTION PROGRESS – TOPPING OUT IN Q3/2020
For more information, please visit: https://akaricity.vn/
July 20, 2020 NAM LONG NEWSLETTER
5 NAMLONGVN.COM “ Creating living environments with human values to the community"
CONSTRUCTION PROGRESS SOUTHGATE PHASE 1
FREE SHUTTLE BUS PRODUCT DEVELOPMENT
SERVICE HUB – BUS STATION PROJECT ENTRANCE
CLUB HOUSE
For more information, please visit: https://waterpoint.com.vn/
July 20, 2020 NAM LONG NEWSLETTER
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WATERPOINT FREE SHUTTLE BUS ROUTE FROM DISTRICT 1, HCMC
WATERPOINT FREE SHUTTLE BUS ROUTE FROM DISTRICT 7, HCMC
July 20, 2020 NAM LONG NEWSLETTER
7 NAMLONGVN.COM “ Creating living environments with human values to the community"
CURRENT PROJECT PORTFOLIO
Disclaimer: This newsletter is prepared by Nam Long Investment Corporation (NLG) to provide short & quick updates for investors regarding status of operation, investment, project development, and strategic decisions from the Board of Directors, Board of Management of NLG. It must be stressed that this report/ or all opinion, information stated is not offer or advice to buy or sell NLG shares. Therefore, this report should be best considered a reference only. NLG does not bear any responsibillionity for the accuracy of the material posted or the information contained therein, or for any consequences arising from its use.
Contact IR & Investment Team: Tel: (84 8) 54 16 17 18
Fax (84 8) 54 17 18 19
http://www.namlongvn.com
No. Project Location Effective
Stake
Land area Type
Number of units
Target Timeline
(ha)
1
Mizuki Park
Binh Chanh Dist., HCMC
50% 26.2 Valora 187
2018 – 2022 Flora 4,044
EhomeS Nguyên Sơn 87% 11.2
EhomeS 1,678 2017-2020
Valora Island Valora 100 2019
2 Flora Novia Thu Duc Dist. HCMC 100% 1.1 Flora 548 2019 - 2020
3 Akari City Binh Tan Dist., HCMC 50% 8.8 Flora 5,228 2019 – 2023
4 South Gate Long An Province 50% 165 Valora 3,227 2019 – 2025
5 Waterpoint Long An Province 100% 190 Township N/A 2020 – 2025
6 Nam Long 2 Can Tho Province 100% 43 Land lot 1,531 2020 – 2023
7 Paragon Dai Phuoc Dong Nai Province 100% 45 Township 587 2020 – 2022
8 Water Front City Dong Nai Province 70% 170 Valora 3,691
2020 – 2025 Flora 3,215
9 VSIP HP Hai Phong City 50% 21 Ehome 2,357
2021 - 2024 Valora 739
Total 681