Fishing offshore

NVL held its 4Q20 results call on Tuesday afternoon.

Key takeaways

Revenue down, profit up. 2020 revenue was VND 5.0tn, down -54% YoY, and PAT was VND 3.9bn, up +14.6% YoY. Thus, NVL did not reach its VND 14.9tn 2020 target revenue but exceeded its 6.74% 2020 target PAT (i.e., VND 3.7tn).

Financial income a major profit driver in 2020, reaching a total of VND 6.2tn, including VND 3.6tn in gains from subsidiary divestments and VND 2.4tn in revaluation of investments. In 2020, NVL divested four subsidiaries: (1) 100% of Phong Dien Investment JSC for a gain of VND 0.8tn, (2) a 40% stake in Phu Dinh for a gain of VND 1.7bn, (3) a 51% stake of Phu Tri JSC for a gain of c. VND 60bn, and (4) 100% of Nova Nippon and Sun City for gains of VND 0.8tn.

Presales maintained despite COVID-19. 2020 unbilled booking value was VND109tn, up +62% YoY. Revenue from projects in HCMC accounted for 35% of the total, which will be recognized when NVL obtains administrative approvals.

Aqua City is a key project. NVL sold 5,084 units in total, of which Aqua City accounted for c. 3.500. The remaining units are attributable to NovaWorld Phan Thiet, NovaWorld Ho Tram, and others.

NVL continues to focus on urban areas and “second home” projects. Yesterday’s analyst meeting did not convey positive information regarding new projects in HCMC to be launched in 2021. However, we expect the highrise sections of Victoria Village to obtain construction licenses and to officially launch this year.

Updates on legal approvals. Tropic Garden and Lexington obtained land-use-rights certification. Aqua 112 and Novalhills Mui Ne have been fully qualified to sign sales and purchase agreements. In addition, NVL expects its projects to benefit from Decree No.148/2020/ND-CP (amending and supplementing the implementation details of the 2013 Land Law), especially projects located in Districts 2 and 9. As such, NVL expects its projects to easily complete all the required administrative procedures.

For the complete report, please access here: NVL– Fishing offshore – 4Q20 earnings results–final ver

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