Positive signals emerge in 1Q results call

NVL held its 1Q20 results call yesterday afternoon.

Key takeaways

• Financial income averted a net loss.
• Management guides for stable liquidity throughout 2020-21
• Cash flow analysis for 2020
• Maintain stable business operation
• Earnings outlook.
• Positive changes in administrative hurdles.

Our view: We see some new and encouraging signs for Novaland ‘s business operations after attending the call. We believe that the company is well-positioned to ensure stable liquidity throughout 2020-21E. The profit potential of their huge and well-positioned landbank (both from development and potential divestment) could become a catalyst for the shares. However, a rerating may require further positive developments, which will take time. Thus we consider NVL appropriate for long-term investors and we reiterate our Hold-Outperform rating on the stock.

For the complete report, please access here: NVL — New positive signals in business operation

Analyst: Tam Nguyen, tam.nguyen@yuanta.com.vn