Novaland Chairman Urges Shareholders to Trust NVL Stock
Novaland’s chairman urges shareholder trust after restructuring, eyes social housing expansion, and aims for sustainable growth in 2025.
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Overcoming Challenges and Rebuilding Trust
At Novaland’s 2024 Annual General Meeting on April 24, Chairman Bùi Thành Nhơn addressed shareholders with a renewed message of hope. After three grueling years of restructuring, Novaland has overcome its most challenging period, and 2024 marks a pivotal year for its recovery.
Quoting Vietnamese wisdom, Nhơn said, “Don’t abandon the paddle just because of rough waters,” and emphasized, “Heaven helps those who persevere.” He urged shareholders to place long-term trust in NVL stock, framing it as a resilient and worthwhile investment.
Currently, NVL stock trades at 11,300 VND per share, reflecting an improvement of over 10% since the beginning of 2024. Despite hitting a record low of 8,100 VND during a previous market downturn, the stock has shown signs of recovery.
As part of its strategic shift, Novaland is expanding into the social and affordable housing segments. The company is seeking approval to convert two major projects—Phu Dinh Port Area in District 8 (50 hectares) and Quan Tre Area in District 12 (10 hectares)—into developments for mid-income and social housing in Ho Chi Minh City.
Although these projects promise lower margins compared to high-end developments, Novaland views them as sustainable, aligning with national housing strategies and ensuring stable cash flows over time.
CEO Dương Văn Bắc echoed Nhơn’s sentiments, apologizing to shareholders for past underperformance. “If you ask me the fair value of NVL stock now, even I can’t accurately say,” Bắc admitted, emphasizing that full restructuring efforts are still ongoing and that the stock’s future value will better reflect operational progress.
Financial Forecast and Recovery Roadmap
Novaland’s 2025 business plan anticipates a net loss ranging between 12 billion to 688 billion VND, significantly better than the 4,359 billion VND loss recorded in 2024. Last year’s heavy loss was largely due to provisions related to land-use fees at the Lakeview City project.
Explaining the projected loss, Bắc noted that low project handover volumes and pending legal clearances remain major risks. The leadership chose not to set overly ambitious financial targets to avoid unrealistic expectations.
However, if legal obstacles are fully cleared within 2025, Novaland forecasts a sharp turnaround: approximately 240,000 billion VND (about 10 billion USD) in ready-to-sell inventory starting 2026. Price increases of at least 20% on existing inventory are also planned, which will significantly boost margins.
By the end of 2026, Novaland aims to complete its restructuring, fulfill commitments to customers, bondholders, financial institutions, and strategic partners.
Restoring Confidence Among Homebuyers
During the shareholder Q&A, concerns were raised about buyer confidence after project delays. CEO Bắc admitted that Novaland’s construction delays severely hurt its reputation among homebuyers, leading to customer frustration and disappointment.
However, he pointed out that previously delivered projects consistently received high marks for quality and management services. Drawing on this foundation, Bắc assured that new product launches will undergo stricter legal checks to ensure no recurrence of past issues.
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