NVL [O-PF +19.8%] - Pure play on growing HCMC residential property market - Initiation
Novaland will list its shares on the Ho Chi Minh Stock Exchange on December 28, 2016. We initiate with an OUTPERFORM rating with 19.8% total return. 25% market share in HCMC mid-range to high-end residential segment. 2017F NPAT growth of 84% Y-o-Y is bolstered by 2014-2016 locked up pre-sales. Encouraging sales progress at upscale projects hike 2017F gross profit margin by 16.2 ppt.