■ NLG’s FY16 presales increased by 25% yoy in volume but a whopping 60% yoy in value because NLG sold mid-range products via a JV with Japanese developers.
■ NLG plans to raise the proportion of overall revenue derived from the sale of midtier housing products from 20% in FY13-15 to 40% in FY17-18F.
■ We upgrade NLG from Hold to Add. NLG is trading at an attractive 25% discount to RNAV and we expect FY17-18 EPS to rise by 42%.
