Company Update

Vietnam: Property 6 January 2025

NLG VN What’s new? Our view

► Weak earnings YTD. NLG achieved just a ► We remain cautious on NLG’s short-term
HOLD- Underperform fraction of revenue & PATMI guidance in growth prospects.
TP upside +9.8% 9M24. ► NLG's earnings depend heavily on provincial
► Presales increased +21% YTD, reflecting markets, as its two HCMC-based projects
Close 6 January 2025 a recovery in housing market confidence. contribute only 5% of total effective GDV.
Price VND 36,550 ► But presales recovery may slow in 2025 ► The New management may take a more active
12M Target VND 38,500 based on our analysis of the launch plan. approach, but their plans remain unclear.
► Insiders have been active sellers of NLG’s ► Reiterate HOLD- Underperform. Our target
stock in 2024. price of VND38.5k implies 11.2% 12-month
TSR.
Company profile: Nam Long Investment is a real estate developer that primarily focuses on what it terms “affordable” housing. Product lines include 1)
Ehome, which has an average selling price of c.USD 1K per sqm; 2) Ehome-S, a social housing product; 3) Flora, which comprises premium affordable apartments
with ASP of US$1.5K-2.0K per sqm; and 4) Valora, which are low-rise homes with selling price of over USD150K per unit. NLG’s land bank is currently c.530ha.

Share price performance relative to VN

Nam Long Group (NLG VN)
Growth Stagnation
NLG's YTD presales performance reflects resumed confidence in the housing
market. NLG sold 1,395 units in 9M24 (+3x YoY), amounting to contracted value
of VND3.5 trillion (+2x YoY). Contracted value surged in Oct-Nov to reach
VND4.6 trillion, attributable to Southgate, EhomeS, and Landlot Can Tho.

But administrative frictions could slow the presales recovery in 2025. NLG
expects 2025 presales to be driven primarily by next-phase launches at existing
projects such as Mizuki, Southgate, and Central Lake, as well as new project
Market cap USD 548 mn
launches including Hai Phong and Paragon. The company anticipates the launch
6M avg. daily turnover USD 2 mn
of the Mizuki subdivisions in 2H25, while Paragon requires further approvals
Outstanding shares 384 mn
Free float 47 % before its planned launch in 4Q25. Notably, Akari Phase 3 and Izumi remain on
FINI ownership 46 % hold due to administrative challenges and with launches now expected in 2026.
Major shareholders 25 %
NLG's earning potential relies heavily on the resilience of provincial markets. Its
FOL Room 3%
3Q23 Net Debt / Equity 31 % only two HCMC-based projects, Akari and Mizuki, account for just 5% of total
Current P/B (x) 1.44x effective GDV as estimated by NLG. Notably, Southgate, Waterpoint, and Izumi
2024F P/B (x) 1.42x City together represent 83% of total effective remaining GDV, based on guidance.
2025F P/B (x) 1.46x
NLG's prospects for landbank expansion are unclear, at least over the next 12
2026F P/B (x) 1.42x
Financial outlook (VND bn)
months. We are pleased to see management’s recent outreach to the Street, but
Year to Dec 2024F 2025F 2026F NLG has outlined only a general strategy for landbank acquisition rather than a
Sales 5,436 4,235 6,591 detailed plan. Furthermore, its current liquidity position and overall business
Op. profit 513 666 1,234
outlook are likely to limit its ability to acquire a mid-sized project -- unless it
PATMI 121 284 518
EPS (VND) 314 738 1,345 secures additional funding through debt and/or equity.
EPS chg (%) -74% 135% 82%
We reiterate our HOLD-Underperform recommendation on NLG with expected
P/B (X) 1.44 1.42 1.46
ROE (%) 4% 4% 7% 12-m TSR of 11.2% well below the 23.6%-plus TSR for other developers under
Div. yield (%) 1.4% 1.4% 1.4% coverage (e.g., KDH +23.6%). Our new fair value estimate of VND38,500 reflects
Sources: NLG, Bloomberg, Yuanta Vietnam
a 4.5% increase after adjusting for (1) reduced SG&A costs, (2) launch timings
aligned with NLG’s latest plan, (3) increased total GDV. The new management
Tam Nguyen team may take a more active approach. But NLG hasn’t acquired any project in
+84 28 3622 6868 ext 3815 the past 5 years, so near-term growth prospects appear constrained.
tam.nguyen@yuanta.com.vn
ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ARE LOCATED
Bloomberg code: YUTA
IN APPENDIX A.
Yuanta does and seeks to do business with companies covered in its research
reports. As a result, investors should be aware that the firm may have a
conflict of interest that could affect the objectivity of this report. Investors
should consider this report as only a single factor in making their investment
decision.
Risks to our view
1. Operational risks.

• Management leadership restructuring. The recent turnover among

key leadership roles, including the CEO, CFO, and CIO, indicates that
NLG has undergone substantial human resources restructuring.

While such changes may aim to strengthen the company, the

outcomes are inherently uncertain and will take time to materialize.

• Market conditions. We anticipate the property market upcycle to

materialize in 2H25, an assumption that appeared conservative
when we applied it a year ago but is now likely a consensus view.

If the market recovery takes longer to recover than our expectation,

it could negatively affect NLG's sales, earnings, debt repayment
capacity and our valuation.

• Administrative processes: As always, securing approval for

adjustments to the master plan, construction permits, or sales
permits may take longer than anticipated.

Of course, it is not impossible that the administrative de-

bottlenecking could occur more rapidly than we and the industry
expect, but hope is not a strategy.

2. Valuation model risk

• Provincial markets are a risk factor for NLG. Izumi City, Southgate,
and Waterpoint are three major swing factors for our valuation
estimate. Crucially, these projects account for 59% of our estimated
total effective NAV for NLG.

• Thus, our RNAV estimate is highly sensitive to (1) the market prices
in provincial markets such as Long An and Dong Nai, and (2) the
resilience of demand for real estate in those areas.

• SG&A cost: Our model assumes SG&A to revenue at 15.8%, well

below the five-year trailing average of 22.6% but similar to the levels
achieved before 2020.

We think that NLG's management restructuring efforts should help

the company manage costs more effectively, but this assumption
presents downside risk if SG&A remains higher than the pre-2020
experience.

• Landbank expansion: Our model incorporates only eight pipeline

projects and assumes no additional project acquisitions in the
future. Additional landbank acquisition could be a catalyst for the
stock, but we note that such a deal would likely require capital
raising.

3. Active Trading by Major Shareholders.

• We maintain the view that major shareholders inherently possess a
competitive advantage due to their greater understanding of the
company's operations and changes compared to other shareholders.

Page 2 of 17
 • Historical trends highlight the active trading of major shareholders
and management.

• Mr. Nguyen Duc Thuan, a board director of NLG and Chairman of

Thai Binh JSC, sold 5.4 million NLG shares between April 2024 and
the present. This has reduced Thai Binh JSC's stake in NLG from
5.41% to 4.47% in the past 8 months.

• NLG’s chairman and related parties (e.g., Tan Hiep Investment Co.,
Ltd.,) have recorded net sales of 5.7 million shares of NLG this year.

• Ibeworth Pte. Ltd – Keppel Land’s subsidiary. (The company's

representative is Mr. Joseph Low Kar Yew - Member of the Board of
Directors and Member of the Internal Audit Committee at NLG.
Additionally, NLG’s ex-CIO is now working at Keppel Land) has
registered to sell 2 million shares during the period from December
23, 2024, to January 21, 2025.

Fig 1: 12-Month Trading Activity of Major Shareholders and Management

Note: (B) = BUY, (S) = SELL

Source: Company data, Yuanta Vietnam
.
Fig 2: 5-year Trading Activity of Major Shareholders and Management

Note: (B) = BUY, (S) = SELL

Source: Company data, Yuanta Vietnam

Page 3 of 17
Business performance update
Business results have been declining steadily for several
consecutive years.
Weak financial results. NLG posted 9M24 revenue of VND 828bn (–46% YoY), of which
VND 552bn was attributable to Southgate and VND 105bn was attributed to Akari.

Additionally, NLG delivered 484 high-rise units at the Mizuki project, generating VND
795 bn in revenue for 9M24. However, this resulted in a paltry JV profit share of only
VND 84 billion, equivalent to a meagre net margin of 10.6%.

Fig 3: Financial Statement (VND billion)

Source: Company data, Yuanta Vietnam

Overall, 9M24 PAT was only VND 55bn (-83% YoY), equivalent to a net margin of
6.6%. Likewise, 9M24 PATMI was VND 16bn, -92% YoY.

As such, in 9M24 NLG achieved a paltry 12% of its target for full-year revenues (VND
6,657bn), 7% of PAT guidance (VND 821bn), and 3% of its full-year PATMI target (VND
506bn).

Inefficient management of COGS and SG&A.

The company's operational costs are high, with the SG&A-to-revenues ratio at 59%
in 9M24. This was far higher than the average of 22% over the last three years. For
comparison, the top-20 developers posted an average 11% SG&A-to-revenues ratio
over the past three years.

NLG management explains that its SG&A costs include salaries, sales commissions,
interest rate subsidies, marketing costs, and other expenses, while some other
developers account for interest rate subsidies and promotion fees under cost of
goods sold.

Page 4 of 17
 However, a comparison of NLG's EBIT margin with its peers highlights inefficiencies
in how the company manages CoGS and SG&A.

Fig 4: SG&A to Revenue Fig 5: EBIT margin (%)

50%

40%

30%

20%

10%

0%
2018 2019 2020 2021 2022 2023

Top-20 developers NLG

Source: Company data, Yuanta Vietnam

During NLG’s investor conference of December 10, 2024, the newly appointed CEO
acknowledged the short-term challenges of raising ROE back to the target of 10%,
The new CEO shared his
citing market cyclicality and productivity constraints as key factors. He emphasized
perspectives
a focus on enhancing efficiency in capital conversion to revenue, while also noting
that land acquisitions may temporarily affect this ratio.

In addition, the company is undertaking process streamlining initiatives aimed at

reducing SG&A costs and improving overall revenue generation.

Furthermore, he stated his belief that the new regulations will enhance transparency
in the property market, particularly regarding LUR fee determination and land
compensation processes. We agree that the changes should make the market fairer
for compliant developers such as NLG.

Fig 6: Capital efficiency: ROE%

Source: Company data, Yuanta Vietnam

Page 5 of 17
 Business Outlook
NLG's presales performance reflects resilient confidence in
the housing market.
In the first 9M24, a total of 1,395 units were sold (+3 times YoY), amounting to a
contracted value of VND 3,523 billion (+2 times YoY).

In October and November, the contracted value surged to VND 4,575 billion,
additional increase of VND 1,050 billion. This surge was attributable to Southgate,
EhomeS Can Tho, and Landlot Can Tho.

The surge in sales is a sign of market resilience, in our view.

Despite this encouraging uptick in 4Q24, total contracted value in 11M24 is still well
below expectations. The company has achieved just 48% of its contracted value
guidance of VND 9,544 billion for 2024

Fig 7: Presales improved in November 2024

Source: Company data, Yuanta Vietnam

Administrative Challenges Could Slow the Presales Recovery

in 2025.
Management expects presales in 2025 to be driven by next-phase launches at
existing projects (i.e., Mizuki, Southgate, Central Lake, Akari and Izumi) and new
project launches, including Hai Phong and Paragon.
Fig 8: Presales Value (VND bn)

Source: Company data, Yuanta Vietnam

Page 6 of 17
 For existing projects, we anticipate that the next phases of Akari Phase 3 and Izumi
are unlikely to launch in 2025 due to ongoing administrative challenges.

Additionally, the launch of Mizuki (i.e., CC5 and LK11 subdivisions) has been
postponed to 2H25, as approvals for foundation construction and sales permits are
still pending.

Akari Phase 3 is currently delayed by unresolved social housing obligations, with

construction planned for 2026. This administrative challenge stems from NLG's
previous approach, which aimed to maximize earnings from the project. It is
important to note that this issue is not linked to recent improvements in
administrative processes (e.g., streamlined procedures or shifting attitudes among
authorities). On the other hand, such improvements have positively impacted certain
challenges faced by the Akari project.

Meanwhile, the Izumi project is awaiting approval for master plan adjustments.
Similar to Akari, the improvement in administrative processes has driven local
authorities to address obstacles, and regulatory changes have provided a clearer legal
framework for resolving such issues.

For context, in 1Q24, the government and Bien Hoa authorities announced plans to
revise the 1/10,000 master plan to support developer-owned projects (e.g., NLG,
NVL) in the western areas of the city. On November 19, the Chairman of the Dong Nai
Provincial People's Committee officially approved the adjustments to the 1/10,000
master plan.

These revisions represent a significant milestone in addressing the legal challenges

that have delayed the Aqua City and Izumi projects for over two years. While the
authorities have resolved key administrative issues—specifically population density
requirements—the remaining challenge of fulfilling social housing obligations
remains a critical hurdle.

For new project launches, the Paragon is awaiting 1/500 master plan approval and
full administrative clearances, with a target launch in 4Q25. Similarly, the Hai Phong
project is in the process of securing approval to launch the Ehome phase in 2025.

Fig 9: NLG pipeline projects

Ownership Total area

No Projects Location Before 2022 2023 2024 2025 2026 2027 2028 2029 After
(%) (ha)
1 Akari 50% 8.8 HCMC
2 Mizuki 50% 26.0 HCMC
3 Southgate 50% 26.4 HCMC
4 Waterpoint 65% 190.0 Long An
5 Izumi 100% 170.0 Dong Nai
6 Paragon 65% 45.0 Hai Phong
7 Hai_Phong 100% 21.0 Dong Nai
8 Central_Lake 100% 43.0 Can Tho

Source: Company data, Yuanta Vietnam

NLG estimates the total remaining gross development value (GDV) across its eight
projects at VND 265 trillion, after revising the remaining GDV for Southgate and Izumi
City upward twice compared to its 2023 guidance. Additionally, the company
disclosed a substantial GDV for the Waterpoint project.

Page 7 of 17
 The latest guidance also highlighted a reduced contribution from the two HCMC-
based projects, Akari and Mizuki, which now account for just 5% of the company’s
NLG's earning potential estimated effective GDV, down from 14% previously. Our model aligns with this
relies heavily on the outlook; we assume that these projects contribute only a modest share, but at a
resilience of provincial
slightly higher level of around 10%.
markets.
As a result, NLG’s earnings potential is heavily dependent on the performance of
provincial markets. Notably, Southgate, Waterpoint, and Izumi City collectively
represent 79% of the total effective remaining GDV in our model or 83% based on
NLG's guidance.

For the landbank expansion, the chairman outlined three key strategies:

1. Agricultural Land, Joining from the early stages, such as land

NLG's prospects for compensation.
landbank expansion remains
2. Projects with Fixed LUR Costs: Prioritizing those that have already
unclear to us, at least over
the next 12 months. undergone LUR fee determination.

3. Master Plan Adjustments: Modifying existing plans to increase gross floor

area and boost total GDV.

However, the lack of specificity in these strategies leaves NLG's prospects for
landbank expansion unclear, at least over the next 12 months, in our view.

Fig 10: Remaining Gross Development Value (GDV, VND bn)

NLG's estimation
YSVN's estimation
2023F 2024F
% proportion in
No Project Location (%) Stake Effective GDV % proportion in
The remaing The remaing total effective The remaing Effective GDV
(VND bn) total effective
GDV (VND bn) GDV (VND bn) GDV GDV (VND bn) (VND bn)
GDV
1 Akari HCMC 50% 10,848 11,587 5,794 3% 7,252 3,626 4%
2 Mizuki HCMC 50% 11,409 7,563 3,782 2% 4,916 2,458 2%
3 Southgate Long An 65% 17,012 33,820 21,983 10% 29,155 18,951 19%
4 Waterpoint Long An 100% 108,387 108,387 51% 38,998 38,998 38%
5 Izumi City Dong Nai 65% 37,517 70,710 45,962 22% 34,042 22,127 22%
6 Paragon Dai Phuoc Dong Nai 50% 13,307 13,307 6,654 3% 5,862 2,931 3%
7 Hai Phong Hai Phong 100% 13,792 13,792 13,792 6% 7,982 7,982 8%
8 Central Lake Can Tho 100% 5,998 5,998 5,998 3% 4,950 4,950 5%
Total 265,164 212,352 133,157 102,023

Source: Company data, Yuanta Vietnam

Page 8 of 17
Fig 11: Project update

Akari City:
• NLG has delivered 1,844 units in Phase 1 and
issued over 1,400 pink books to residents.
• Phase 2: Comprises 4 blocks (AK7–10) with ~1,700
units. Deliveries will start in late October,
generating VND 6.4 trillion in revenue, with VND
3.3 trillion expected to be recognized in 4Q24.
• Phase 3: Estimated to launch in 2026 with ~1,500
units, pending resolution of social housing
obligations.

Mizuki Park:
• We estimate there are c. 1,270 remaining high-rise
units and 22 remaining low-right units.
• The launch of CC5 and LK11 subdivisions are
delayed to 2H25 due to pending approvals for
foundation construction and sales permits.

The Southgate
• Ehome phase 1+2: comprising B2, A5, A3 and A4
building, equivalent to c.1,492 units have been
completed delivering to hombuyers.
• Ehome Phase 3: comprising 3 building (i.e., A1,A2
and B1) equivalent to 580 units
• a building A2 was sold though a bulk sale in 1Q24.
• NLG expect to delivery the remaining two building
in 2025
• Low-rise subdivision: Sales for the next phases are
ongoing.
• The construction start date for Aeon Mall appears
to be delayed.

Izumi
• The project has 2,940 low-rise units and undeterm
• Phase 1A1: Nearly completed delivery of 275 low-
rise units.
• Other subdivisions: Launches are pending approval
of the adjusted master plan.
• NLG expected to secure approval in 2Q-3Q25 and
with the launch planned for 2026.

Page 9 of 17
 Nam Long Can Tho:
• EhomeS Can Tho: comprising 1,590 units with total
revenue of VND 1,378 billion. Deliveries began in
October 2024, with VND 800 billion expected to be
recognized in 4Q24.
• Land lot and low-rise unit subdivision: LUR fee was
paid in September 2024, with launches and
deliveries commencing in 4Q24.
• Contracted sales reaching VND 528 billion by
November.
• NLG expects deliveries in 4Q24 to generate VND
1,277 billion in revenue.

Nam Long Hai Phong:

• At the end of 1Q23, the government approved the
adjusted master plan for Hai Phong City.
• Thus, NLG expects to launch a social housing
subdivision in 2025.

Nam Long Dai Phuoc

• Comprising c.600 low-rise units.
• Completed the prolonged administrative process
to transfer a 25% stake in the project to Nippon
Railroad in June 2024.
• The 1/500 master plan adjustment is in progress,
NLG expects to secure an approval in 4Q25.

Source: Company data, Yuanta Vietnam

Page 10 of 17
 Liquidity in Check, Expansion Restricted
Reasonably healthy balance sheet liquidity. NLG’s three key liquidity metrics (i.e., 84%
cash coverage of short-term debt, 31% net debt to equity, and 47% liabilities to
assets) stand at reasonable levels vs its industry peers. As illustrated in Fig 12 below,
NLG ranks atop the Tier 2 developer group based on our scoring framework.

Fig 12: Top 20 developers: Key credit metrics as at 3Q24

Source: Company data, Yuanta Vietnam

Prudence at the expense of growth? NLG appears to prioritize prudence in its

operational strategy, as demonstrated by its lack of new landbank acquisitions over
the past five years. The company mitigates risk and shares profits with partners by
divesting portions of projects prior to their launch.

However, its slow project rollout and limited capacity to manage multiple projects
simultaneously have raised concerns among investors.

We believe these challenges stem from what appears to be a cumbersome and

underperforming operational structure. This represents a challenge but also an
opportunity for the new senior management.

The company's financial leverage raises concerns about effectiveness. Over the past
three years, total debt has grown at a 45% compound annual growth rate (CAGR),
significantly outpacing equity growth at 23% CAGR. Also, PATMI for 2022–2023 is
only half of the 2021 level, at approximately VND 500 billion.

Page 11 of 17
 Furthermore, NLG's capacity for expansion remains constrained. Given its current
liquidity position and financial leverage, acquiring even a mid-sized project could
NLG's capacity for expansion
present a challenge for the company.
remains severely constrained
With NLG's operational outlook over the next 12 months likely to remain persistently
soft, the company may be forced to rely on increased leverage if it decides to acquire
new landbank. This would further exacerbate the risks to its liquidity position.

On 27 December 2024, NLG announced its decision to cancel the advance payment
of the 2024 dividend originally scheduled for December 2024. Instead, the company
plans to submit the cash dividend for 2024 to the Annual General Meeting in 2025
for approval.

On 31 December 2024, NLG announced its decision to seek shareholder approval to

raise funds by issuing new shares through a public placement, with the ex-date set
for 03 February 2025.

These decisions align with our analysis of NLG’s financial position outlined above.

Fig 13: NLG: Liquidity metric and financial leverages

Source: Company data, Yuanta Vietnam

Page 12 of 17
 Valuation
Our fair value estimate for NLG is VND 38,500 per share, representing a 9.8% increase
from our previous NAV-per-share estimate.

This adjustment reflects two key factors:

(1) We have reduced our assumption for SG&A-to-revenue from 21.1% to 15.8%
as we expect NLG's human resource restructuring efforts to help the
company manage costs more effectively. Our new assumption is in line with
the average level of 15.8% achieved between 2015 and 2019.

(2) We have revised the project launch timeline in our model due to the
administrative constraints discussed earlier, this delay reduces their
contribution to the current valuation and

(3) We have increased the total GDV for Izumi and Waterpoint after NLG provided
more detailed information on the total number of units. These changes align
with the company’s landbank expansion strategy, which involves adjusting
the master plan to maximize total GDV.

However, since these additional GDV units are high-rise developments, we

anticipate that their launch is likely to be in the distant future. Given their
location in provincial markets, the launch timing will likely coincide with the
peak of the next real estate cycle or be postponed until a more convenient
transportation system is established. As a result, their contribution to the
current valuation is minimal.

Additionally, the latter change introduces risks related to the project launch
timeline and uncertainties regarding the total number of units, especially
given the continued challenges of the administrative processes.

Fig 14:Valuation summary Fig 15: NPV breakdown by project

Ownership Valuation Development NPV Effective NPV

No Project
rate approach (VND bn) (VND bn)
1 Akari 50% DCF 2,275 1,138
2 Mizuki 50% DCF 2,044 1,022
3 Southgate 65% DCF 4,377 2,845
4 Waterpoint 100% DCF 6,128 6,128
5 Izumi 65% DCF 4,698 3,054
6 Paragon 50% DCF 1,765 883
7 Hai_Phong 100% DCF 1,771 1,771
8 Central_Lake 100% DCF 1,501 1,501
9 Others 788
Total project NPV 19,130
Cash and cash equivalent* 2,465
Total borrowing -6,590
NAV (VND billion) 15,005
Number of shares (billion share) 0.39
Target price (VND/share) 38,500

Source: Company data, Yuanta Vietnam

Page 13 of 17
INCOME STATEMENT (VND'bn) 2023A 2024E 2025E 2026E BALANCE SHEET (VND'bn) 2023A 2024E 2025E 2026E
Net sales 3,181 5,436 4,235 6,591 Total assets 28,611 30,132 29,986 30,512
Cost of sales (1,619) (3,827) (2,899) (4,315) Current Assets 25,313 27,159 27,640 27,926
Gross Profit 1,562 1,609 1,336 2,276 Cash & cash equivalents 2,540 2,457 1,960 1,549
Selling expenses (418) (389) (303) (471) ST Investment 1,050 1,019 1,035 1,027
General and admin expenses (562) (707) (367) (571) Accounts receivable 3,637 3,604 3,121 2,863
Operating profit/(loss) 582 513 666 1,234 Inventories 17,353 19,853 21,347 22,211
Financial income 238 97 97 97 Other current assets 733 226 177 276
Financial expenses (296) (195) (168) (169) Long-term Assets 3,298 2,973 2,346 2,586
Gain/(loss) from joint ventures 418 53 - 21 Long-term trade receivables 13 142 110 172
Net other income/(expenses) 27 27 27 27 Net fixed assets 141 52 45 35
Profit/(loss) before tax 969 495 622 1,210 LT Investment 2,220 1,720 1,720 1,720
Income tax expenses (168) (99) (124) (242) LT assets other 924 1,059 471 659
Net profit/(loss) after tax 801 396 498 968 Total Resources 28,611 30,132 29,986 30,512
Minority interests (317) (275) (214) (450) Total Liabilities 15,079 16,399 16,274 16,115
Attributable to parent company 484 121 284 518 Advances from customers 3,815 3,339 3,892 4,175
Accounts payable 1,175 1,374 1,258 533
EPS bacis reported, VND 1,187 314 738 1,345 ST debts 2,402 2,912 3,015 2,964
EPS fully dilited, VND 1,187 314 738 1,345 Other ST liabilities 2,494 3,644 3,069 3,357
Long term debt 3,705 3,461 3,461 3,462
FINANCIAL RATIO 2023A 2024E 2025E 2026E Other LT debt 1,489 1,669 1,579 1,624
Growth (%) Shareholder's equity 13,532 13,733 13,712 14,397
Revenue, growth -27% 71% -22% 56% Paid in capital 3,848 3,848 3,848 3,848
Operating Income, growth -30% -12% 30% 85% Share premium 2,643 2,643 2,643 2,643
PBT, growth -9% -49% 26% 95% Retained earnings 2,879 2,804 2,569 2,804
EPS, growth -12% -74% 135% 82% Other equity 13 13 13 13
Total Assets, growth 6% 5% 0% 2% Minority interest 4,150 4,425 4,639 5,089
Equity, growth 2% 1% 0% 5% CASH FLOW (VND'bn) 2023A 2024E 2025E 2026E
Profitability (%)
Gross Profit Margin 49% 30% 32% 35% Begin cash of the year 3,773 2,540 2,457 1,960
Operating Profit Margin 18% 9% 16% 19% Net profit before tax 968 495 622 1,210
Net Margin 25% 7% 12% 15% Adjustments (280) (144) (117) (118)
ROE 6% 3% 4% 7% Change in Working Capital (3,031) (1,264) (1,107) (983)
ROA 3% 1% 2% 3% Cash from Operations (2,343) (913) (602) 109
ROIC 4% 2% 3% 5% Capital Expenditures (24) 89 7 10
Efficiency (x) Investments (174) 531 (16) 8
Receivable Turnover 0.88x 1.50x 1.26x 2.20x Change in other 602 (138) (10) (745)
Inventory Turnover 0.10x 0.21x 0.14x 0.20x Cash from investments 404 482 (19) (727)
Payable Turnover 0.35x 0.79x 0.59x 0.88x Dividend Paid (187) (193) (193) (193)
Proceeds from issue of shares
Liquidity (x) 0 - - -
Current ratio 2.56x 2.41x 2.46x 2.53x Net change in debt 893 266 103 (50)
Quick Ratio 0.73x 0.63x 0.54x 0.49x Change in other 0 275 214 450
Financial Structure (x) Cash from financing 706 348 124 207
Total liabilities/Equity 1.11x 1.19x 1.19x 1.12x Effect of FX differences 0 2 3 4
Total liabilities/Total Assets 0.53x 0.54x 0.54x 0.53x Net change in Cash (1,233) (83) (497) (411)
Debt/Equity 0.45x 0.46x 0.47x 0.45x Ending cash balance 2,540 2,457 1,960 1,549

Source: Company data, Yuanta Vietnam

Page 14 of 17
Appendix A: Important Disclosures
Analyst Certification
Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to
each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal
views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related
to the specific recommendations or views expressed by that research analyst in the research report.

Ratings Definitions
BUY: We have a positive outlook on the stock based on our expected absolute or relative return over the investment period. Our
thesis is based on our analysis of the company’s outlook, financial performance, catalysts, valuation and risk profile. We
recommend investors add to their position.
HOLD-Outperform: In our view, the stock’s fundamentals are relatively more attractive than peers at the current price. Our thesis is
based on our analysis of the company’s outlook, financial performance, catalysts, valuation and risk profile.
HOLD-Underperform: In our view, the stock’s fundamentals are relatively less attractive than peers at the current price. Our thesis
is based on our analysis of the company’s outlook, financial performance, catalysts, valuation and risk profile.
SELL: We have a negative outlook on the stock based on our expected absolute or relative return over the investment period. Our
thesis is based on our analysis of the company’s outlook, financial performance, catalysts, valuation and risk profile. We
recommend investors reduce their position.
Under Review: We actively follow the company, although our estimates, rating and target price are under review.
Restricted: The rating and target price have been suspended temporarily to comply with applicable regulations and/or Yuanta policies.

Note: Yuanta research coverage with a Target Price is based on an investment period of 12 months. Greater China Discovery Series
coverage does not have a formal 12 month Target Price and the recommendation is based on an investment period specified by the
analyst in the report.

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YUANTA SECURITIES NETWORK

YUANTA SECURITIES VIETNAM OFFICE

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Institutional Research
Matthew Smith, CFA Binh Truong
Head of Research Deputy Head of Research (O&G, Energy)
Tel: +84 28 3622 6868 (ext. 3815) Tel: +84 28 3622 6868 (ext. 3845)
matthew.smith@yuanta.com.vn binh.truong@yuanta.com.vn

Tanh Tran Tam Nguyen

Analyst (Bank) Analyst (Property)
Tel: +84 28 3622 6868 (ext. 3874) Tel: +84 28 3622 6868 (ext. 3874)
tanh.tran@yuanta.com.vn tam.nguyen@yuanta.com.vn

Di Luu An Nguyen
Analyst (Consumer) Assistant Analyst
Tel: +84 28 3622 6868 (ext. 3845) Tel: +84 28 3622 6868 (ext. 3845)
di.luu@yuanta.com.vn an.nguyen@yuanta.com.vn

Giang Hoang
Assistant Analyst
giang.hoang@yuanta.com.vn
Institutional Sales
Lawrence Heavey Tuan-Anh Nguyen
Head of Institutional Sales Sales Trader
Tel: +84 28 3622 6868 (ext. 3835) Tel: +84 28 3622 6868 (ext. 3909)
lawrence.heavey@yuanta.com.vn anh.nguyen2@yuanta.com.vn

Dat Bui Hien Le

Sales Trader Sales Trader
Tel: +84 28 3622 6868 (ext. 3941) Tel: +84 28 3622 6868
dat.bui@yuanta.com.vn hien.le@yuanta.com.vn

Vi Truong
Sales Trader
Tel: +84 28 3622 6868 (ext. 3940)
vi.truong@yuanta.com.vn