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Novaland added to FTSE Vietnam Index

Released at: 14:10, 15/06/2017

Novaland added to FTSE Vietnam Index

Photo: Novaland

Property developer added to Index six months after listing on HoSE.

by Quang Huy

Six months since its debut on the country’s major stock exchange, Novaland has been added to the FTSE Vietnam Index, the underlying index for db x-trackers FTSE Vietnam UCITS ETF, run by Deutsche Bank, in the index’s second quarterly review of 2017.

A stock must meet all conditions to be considered in the basket of the FTSE Vietnam Index. That includes companies whose full market value within the top 88 per cent of the full market capitalization of the review universe, and securities that turnover at least 20 per cent of the FTSE Vietnam All-Share Index three-month average daily traded value.

Moreover, companies must have a free-float of more than 5 per cent to be included in the index, as well as having a greater than 10 per cent foreign ownership availability.

RongViet Research predicted in its second quarter review that FTSE Vietnam EFT will acquire 8.7 million Novaland shares, which may cost up to $25.84 million at the current share value. The new portfolio will come into effect after the trading session on June 16 closes, and will officially be traded on June 19.

Since its debut on the Ho Chi Minh Stock Exchange (HoSE) on December 28, Novaland has been added into the portfolio of ETF funds, with its shares being officially included in MSCI Global Standard Indexes in January and entering the MVIS Vietnam Index in March 2017.

According to its audited report for 2016, Novaland recorded net revenue of $324 million, up 10.3 per cent compared to 2015. Total assets set a record of more than $1.6 billion, an increase of 37.5 per cent, and after-tax profit reached $73 million, up 276.1 per cent.

During the first quarter of this year, Novaland posted a net profit of VND409 billion ($18 million), up 164 per cent year-on-year. It targets revenue of around VND17.53 trillion ($771 million) for the year as a whole, with after-tax profit of nearly VND3.14 trillion ($140 million), and will increase its owner’s equity to about VND14 trillion ($616 million).

In trading session on June 15, its shares closed at VND67,300 ($2.97), putting its market capitalization at about $1.8 billion, among the Top 10 largest, and is attractive among foreign investors.

Established in 1992, Novaland has become one of the leading real estate developers in Vietnam. It sold more than 8,000 property units in 2016, up 13.3 per cent against 2015, and accounts for 23 per cent of Ho Chi Minh City’s property market.

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