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NLG [BUY +33.4%] - Bright outlook buoyed by Waterpoint project - Update

Company Research

26 Jan 2018

We reiterate our BUY rating on NLG and raise our target price by 26% to VND41,900 (adjusted for an upcoming 5:1 rights issue) reflecting: (1) Revaluation of NLG’s Waterpoint project, to whose book value we now apply a 50% premium as we believe this could be monetized in the near-term, (2) ~10% increase in average selling price assumptions for the Nguyen Son and Mizuki Park projects, given current market levels, (3) NLG’s higher net cash balance and (4) DCF roll-over effect.
Tags: NLG

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