Novaland shares have not fully reflected their intrinsic value, says founder Bui Thanh Nhon.

According to Novaland founder Bui Thanh Nhon, the stock price has not reflected the company's intrinsic value and its recovery potential as legal issues are gradually resolved. Speaking at today’s annual general meeting, Bui Thanh Nhon, founder of Novaland Group (NVL), told shareholders that the current market price did not reflect the company's intrinsic value and its recovery potential. Although many challenges lie ahead, he believes NVL's value will improve as the economy grows, the legal issues of projects are resolved, and the leadership team's dedication remains upcoming. "Novaland shares are still fluctuating but will soon return to their real value," Nhon said. At the close of trading today, NVL rose 2.4% to 19,200 dong per share. During the session, the stock briefly touched the ceiling price. Since the beginning of the year, Novaland shares have risen nearly 44%. This is also the highest price range since mid-September 2023. However, based on the price-to-book (P/B) ratio, the stock trades at about 0.65x book value, meaning the shares are trading below their book value. In the Q&A, a shareholder asked about progress on the planned private share issuance. CEO Duong Van Bac said the market context and NVL stock price movements over the past two years have not been favorable, making the plan difficult. Nevertheless, he expects the overall market and price movements to show positive signals, and Novaland will continue to work and negotiate with partners. In a press conference last week, a company representative noted that one restructuring option proposed was converting bonds into shares. However, the proposed price was higher than the market price at the time of negotiation, making the option less attractive to bondholders. Regarding near-term plans, Nhon said the company will focus on completing and delivering commitments for key projects such as Aqua City, NovaWorld Phan Thiet, NovaWorld Ho Tram, and projects in central Ho Chi Minh City like The Grand Manhattan, Victoria Village, and The Park Avenue. This year’s targets include delivering more than 2,600 products, issuing more than 4,300 pink slips (sổ hồng) for central Ho Chi Minh City projects, and continuing new sales with more than 2,100 units ready for sale. By 2030, projected cash flow from ongoing projects is expected to exceed 470,000 billion dong. Novaland currently has more than 2,400 hectares of undeveloped land bank. The company will selectively develop land, focusing on projects that generate real cash flow. Novaland defines its priority as completing financial and governance restructuring, establishing a stable and sustainable operating foundation, and accelerating legal progress and project construction. It will also push governance standards, accelerate technology adoption, and integrate ESG into project development to attract green capital. On financial restructuring, the company is pursuing a plan to issue shares to swap debt from bonds and is negotiating with bondholders. The company is also seeking suitable investors to continue executing convertible loans. Mr. Nhon believes fulfilling commitments to customers and shareholders is not only a legal obligation but also a matter of credibility and honor for the business. "Market confidence is built not only with words but with concrete actions and tangible results," Nhon stated. This year, the company targets revenue of 22,715 billion dong and net profit after tax of 1,852 billion, down slightly about 0.5% due to the upward trend in interest rates. Novaland will not pay dividends in 2025; undistributed after-tax profits will be used to focus on recovery plans.