What caused Novaland shares to hit the ceiling, reaching a 7-month peak?

In the 24/7 trading session, NVL shares of No Va Real Estate Investment Group Corporation ( Novaland ), chaired by Bui Thanh Nhon, unexpectedly attracted cash flow and active trading.

By the end of the session, NVL increased to the maximum allowed margin (+7%) to 16,200 VND/share. Nearly 96 million units were transferred, equivalent to nearly 5% of the company's shares were transferred in one session.

The buying surplus at the ceiling price is still very large, with more than 4.5 million units. Meanwhile, the selling side is empty.

With the ceiling price breakthrough, NVL shares increased by nearly 60% since the bottom recorded in early March (about more than 10,000 VND/share). The company's capitalization increased by nearly 12,000 billion VND, equivalent to more than 500 million USD within a few months.

This is a rather surprising development even though Mr. Bui Thanh Nhon’s business is still facing many difficulties. The company is in the process of restructuring and handling debts, including a large amount of bonds that are about to mature… Enterprises were sold off NVL shares.

Over the past several months, the market has seen large cash flows pouring into “rescuing” this stock. Some trading sessions reached over 100 million units, such as at the end of November 2022 after NVL fell freely, hitting the floor for dozens of sessions and had no buyers.

NVL shares have risen again as the Government has introduced many solutions to ease difficulties for the real estate market in general and Novaland in particular. Banks have continuously reduced interest rates to support economic growth. Novaland has restarted many projects.

In early July, Ms. Bui Cao Ngoc Quynh, daughter of Mr. Bui Thanh Nhon, successfully purchased 3.04 million NVL shares, increasing her ownership in Novaland to 24.678 million shares, equivalent to 1.266% of the company's charter capital.

Since the beginning of the year, Mr. Bui Thanh Nhon’s daughter has bought NVL shares twice. In total, she has nearly 22.4 million shares. Ms. Quynh’s assets have also increased rapidly.

Signals from the 30,000ha project

Novaland shares increased sharply again in the context that Mr. Nhon's company not only restarted many real estate projects but also received information that Lam Dong province agreed to assign the Department of Construction to receive the planning concept documents for the 30,000ha Lam Vien Highland project in Bao Lam district.

*Lam Vien Plateau is considered to have many beautiful landscapes.*

Previously, Novaland sent a document to the Lam Dong Provincial People's Committee regarding the proposed planning of the Lam Vien Highlands tourism and entertainment complex urban area. Novaland said that it had received and completed the project planning concept report according to the comments at the meeting and the conclusions of the Lam Dong Provincial People's Committee.

In April 2022, Lam Dong Provincial People's Committee issued an official dispatch approving the policy for Novaland to research, survey and fund the planning concept in the Dak Long Thuong Lake area in Bao Lam district and part of Bao Loc city. According to the proposal, Novaland will invest in building a complex urban area on an area of 30,000 hectares, including houses, tourist villas, commercial centers, schools, green parks, etc.

According to the Department of Natural Resources and Environment, based on the proposed content, the investor must bear all planning costs and risks. After the planning is approved, the investor will implement it through bidding or auction in accordance with the provisions of the law on land and investment.

Lam Dong Province Department of Planning and Investment requested Novaland to clarify the expected capital of 10 billion USD divided into 5-year phases for the project.

Also in Lam Dong province, in June 2023, Novaland also proposed to study and invest in an international multi-functional resort project combined with a golf course in Duc Trong and Di Linh districts with an area of 396 hectares.

Mr. Bui Thanh Nhon: Novaland has overcome the most difficult times, committed to compensating customers . Novaland Chairman Bui Thanh Nhon committed to compensating for losses to customers, investors, and partners and said that production and business activities will recover in the third quarter of 2023.

Source