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NLG - REDUCE - Rich land bank, concentration risk - Initiation

We initiate coverage on NLG with a REDUCE recommendation based on an RNAV of VND19,100, implying a downside of 17%. NLG is a reputable township developer who pioneered the affordable apartments segment under its E-home brand. However, most of its large (570ha) land bank is concentrated in Long An, just outside of HCMC, where we believe sales will remain difficult given market conditions.