Speaking at the annual general meeting this afternoon, Bui Thanh Nhon, founder of Novaland Group (NVL), told shareholders that the current market price of the stock does not accurately reflect its intrinsic value and the company's recovery potential. Despite future challenges, he believes NVL’s stock value will improve as the economy continues to grow, legal issues for projects are resolved, and the dedication of the upcoming young leadership team is realized.

"Novaland stock may still fluctuate, but it will soon return to its true value," Nhon stated.

At the close of trading today, NVL shares increased by 2,4% to 19,200 VND a share. During the session, the code briefly approached its ceiling price. Compared to the beginning of the year, Novaland's stock has surged by nearly 44%. This also marks its highest price range since mid-September 2023. However, based on the price-to-book (P/B) ratio, the stock is valued at only about 0,65 times, indicating it is trading below its book value.

Novaland has outlined its strategic priorities: completing financial and governance restructuring to create a stable, sustainable operational foundation. Concurrently, the company will accelerate the legal processes and construction progress of its projects. Additionally, NVL focuses on enhancing governance standards, promoting technology application, and integrating environmental, social, and governance (ESG) principles into project development to attract green capital.

Regarding financial restructuring, the company is pursuing a plan to issue shares to convert outstanding bond debt and is intensifying negotiations with bondholders. The company is also actively seeking suitable investors to execute convertible loan agreements. During a dialogue, a shareholder inquired about the progress of the private share placement plan. CEO Duong Van Bac explained that unfavorable market conditions and NVL stock performance over the past two years have hindered the implementation of this plan. However, he expressed optimism that with positive signals in the overall market and stock performance, Novaland will continue to work and negotiate with partners. At a press meeting last week, a Novaland representative also mentioned that one of the restructuring options considered was converting bonds into shares. However, the proposed price was significantly higher than the market price at the time of negotiation, making the option less attractive to bondholders.

Regarding future plans, Bui Thanh Nhon affirmed that the company will focus on completing and fulfilling commitments for key projects such as Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram, along with projects in central Ho Chi Minh City like The Grand Manhattan, Victoria Village, and The Park Avenue.

This year's goals include delivering over 2,600 products, ensuring over 4,300 land ownership certificates are issued for projects in central Ho Chi Minh City, and continuing new sales with over 2,100 units ready for market. Furthermore, cumulative potential revenue streams from ongoing projects are projected to reach over 470 trillion VND by 2030. Currently, Novaland holds over 2,400 hectares of undeveloped land. The company plans to selectively exploit this land, prioritizing projects that generate real cash flow.

Bui Thanh Nhon, the founder, speaks at the annual meeting on the afternoon of 23/4. Photo: NVL

Nhon emphasized that fulfilling commitments to customers and shareholders is not only a legal obligation but also a matter of the company's reputation and honor.

"Market trust is not built merely on words; it must be restored through concrete actions and tangible results," the Novaland founder stated.

For this year, the company projects record revenue of 22,715 trillion VND and an after-tax profit of 1,852 trillion VND, a slight decrease of 0,5% due to the impact of rising interest rates. Novaland will not distribute dividends for 2025; instead, undistributed after-tax profits will be allocated to business recovery plans.

Tat Dat