NLG – Update – 20180522

• NLG’s medium-to-long term earnings outlook has improved due to its solid project pipeline and sizeable land bank. Its RNAV could increase following an update on its Water Point development plan and from upcoming project transfers but the stock looks fairly valued for now
• NLG’s newly launched projects include Akari city (Hoang Nam) and Areco, both of which offer affordable condos under the brand name Flora/Ehome.
• The condo segment will dominate FY18 presales. s. NLG announced its plan to transfer 50% of its stake at Akari (8.8 ha) and a part of Water point (52 ha) to Japanese partners.
• We raise our TP but maintain a HOLD recommendation.

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