Nam Long expecting revenue of VND 10.000 billion, focusing on fast selling products

This year, Nam Long continues to record sales from projects such as Akari City, Mizuki Park (HCMC), Southgate Long An, Can Tho project.

Nam Long is carrying out 8 projects simultaneously

At a seminar on the real estate industry held by HSC, Pham Dinh Huy, Investment Director of Nam Long Investment Joint Stock Company (HoSE: NLG) shared 2 differences of the company compared to others in the market.

Firstly, the anchor in Nam Long’s operation over 30 years has been customers who have real needs in the areas where the project is deployed, such as Can Tho, Hai Phong, Long An, Ho Chi Minh City, and Dong Nai.

Nam Long used to invest in a resort project, even purchased the land and paid land use fees. However, with a clear objective targeting the real demand housing segment, the Company sold this project and used the money to compensate and develop the Southgate Long An project.

In terms of capital structure, Nam Long is different from other enterprises in the industry. The Company uses equity to acquire land and uses loans such as bonds or investment from domestic and foreign partners to reinvest. The goal is to get a part of the money in the purchased land and reinvest it in the project itself, ensuring that the debt-to-equity ratio does not exceed 50% at any point throughout project development.

Currently, Nam Long is working on 8 projects at the same time, but the debt to equity ratio is only 35%.

Strategically launching fast selling products

Pham Dinh Huy also said that this year, the total value of Nam Long's sales may reach VND 18,000 billion, but the company only sets a sales target of VND 10,000 billion, equivalent to the previous year.

The target number is set lower than expected because in the list, Nam Long has high value products, about VND 20 - 30 billion. According to the company's assessment, this is not in line with the current situation. Nam Long has decided to focus on selling projects with better absorption capacity such as EHome commercial apartments (priced around VND 1 billion/unit), EHomeS social housing (priced from VND 650 million/unit depending on region), condominiums of the Flora line (from VND 1.5 billion/unit).

Sales of VND 10,000 billion came from projects such as Akari City, Mizuki Park (HCMC), Southgate Long An, Can Tho project. If the Company can complete the legal issues timely, they can also sell Izumi City (Dong Nai).

In Q1, Nam Long handed over Flora MP6-7-8 apartment complex in Mizuki Park, recording more than 500 apartments with 95% completed payment. Thus, the Company can recognize profit from this project.

Under favorable legal conditions, Nam Long can sell land and commercial housing products at the Can Tho project. In Q2 this year, the company also plans to sell social housing products for this project.

In Izumi City (trade name: Dong Nai Waterfront project), the company has sold phase 1, of which construction is being completed, contracts are being signed and expected to hand over this year. In addition, the company is also promoting the project's legality, changing the 1/500 plan to make product adjustments to suit the current market. Huy also added that the sales progress depends on the planning. If the planning is slow, the company will have to consider whether it can follow the initially approved plan.

With a sales figure of VND 10,000 billion, Nam Long's management is considering a target of VND 4,300 billion in revenue and VND 500 billion in profit this year. This plan is not 100% certain, according to Huy, and still depends on the market and will be submitted to shareholders for approval at the 2023 Annual General Meeting of Shareholders on April 22.

Nam Long's representative also added that in June - July, Nam Long has about VND 450 billion of bonds to maturity at VCBS. The payment is not a concern, the Company has cash flow to pay out.

Source: baodautu.vn