Chairman of Nam Long explains ‘stock price has not broken through in 5 years’

“Both the fluctuation range and liquidity are not as vibrant as some codes in the same real estate industry. Is NLG’s price being suppressed?”, a shareholder asked the company’s head.

Nam Long Chairman Nguyen Xuan Quang said he was very concerned when the stock had not broken through for a long time. He personally owns more than 38 million shares, equivalent to 7.86% of capital, and is the largest shareholder here. He said that over the years the company has done well in product development, land fund expansion, and management transparency, but has not converted these into financial indicators. According to him, this is the main reason why the stock has potential but has not been recognized by the market.

“Stock prices increase and decrease due to fluctuations in sales, revenue, profits, and profitability ratios. Clearly we have potential but have not fully realized it yet,” Mr. Quang replied to shareholders.

NLG shares are trading around 28,000 VND, down 10% compared to the beginning of the year. The current market price is half of the peak set at the end of 2021. The P/B index (ratio on book value) is at 1.1 times, the lowest in 5 years.

Chairman Nam Long admitted that making the market and shareholders understand and stick with the company over the years has not been good. However, he affirmed that the situation will soon change when the company improves its financial indicators and connects investors. The goal is to bring the market price to 60,000 VND and capitalization to 1 billion USD.

In recent reports, many securities companies forecast NLG’s target price in the next 12 months to range from 34,000-38,000 VND, an increase of 20-35% compared to the present, equivalent to P/B 1.3 times. According to the MBS analysis team, this stock’s valuation is at its lowest level in 5 years, but core business activities have many positive signs, especially sales.

This year, sales of this business are expected to be nearly 23,500 billion VND, double the record set last year. Expected revenue is 7,630 billion VND and profit after tax of parent company shareholders is about 720 billion VND, up 35% and 3% respectively over the same period.

Many shareholders are concerned about the sudden plan in the context of the unstable real estate market, combined with the growing mismatch between house prices and income. However, Nam Long’s board of directors affirmed their confidence in completing this goal.

Mr. Lucas Loh, General Director of Nam Long, said the plan to double sales is based on many pillars. First is a product portfolio worth several billion USD, ranging from affordable to high-end housing.

Second, strong distribution system and flexible sales policies from interest rates, payment schedules to financial support packages. Finally, the company expects rapid infrastructure development to help its projects in the vicinity of Ho Chi Minh City sell better.

Nam Long has just transferred 49% of capital of Nam Long ADC, a subsidiary specializing in developing affordable housing and social housing, to Nishi-Nippon Railroad Group (Japan). This enterprise still retains controlling power with 51% of the capital. The value of the deal and the time of recording profits in the consolidated financial statements have not been disclosed.

Mr. Nguyen Xuan Quang added that joining hands with Japanese partners helps Nam Long ADC partly solve the problem of capital to expand land fund and develop projects. He said he is targeting many land banks in Tay Ninh, Hai Phong, Hai Duong to make products in the price segment of 2-3 billion VND, suitable for buyers with income of about 40-50 million VND per month.

Talking on the sidelines of the meeting, Mr. Quang said that the affordable housing segment always has sustainable demand and is less volatile than the high-end group. Experience from many markets such as Malaysia, Vietnam or Canada shows that this is the foundation to help businesses maintain long-term growth.

Chairman Nam Long said he will review the investment portfolio in the 2026-2027 period, prioritizing projects that are affordable for the majority instead of spreading development. The business identifies the group of customers who buy to stay as the focus, with the criteria of reasonable price, stable quality and long-term use value.

Last year, this company delivered nearly 400 products and aims to increase the total to 22,000 in the next 10 years.