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NLG [O-PF +12.1%] - Time for NLG to prove its sales capabilities - Re-Initiation

Company Research

20 Jul 2016

We issue an O-PF rating for NLG. We expect strong contract sales growth in 2016 and 2017. However, the stock has increased 16% in the last 12 months and is fairly priced at 1.2x 2016 P/B. Gradual move-up to mid-range segment will be the growth driver. After securing a strong position in the low-end segment, NLG now focuses on mid-range apartments at USD800/m2-USD1,000/m2 and townhouses/villas to capture the robust demand in HCMC.
Tags: NLG

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