AsemconnectVietnam - Coteccons is focusing on pursuing projects in the infrastructure sector, with this segment forecast to contribute a large amount of revenue in the following years. In addition, CTD is participating in a number of projects in foreign markets. These efforts will help the Company's 2025 revenue to be more sustainable and not dependent on fluctuations in the domestic market.

On October 19, 2024, Coteccons Construction Joint Stock Company (CTD) held its Annual General Meeting of Shareholders for the 2024 fiscal year (from July 1, 2023 to June 30, 2024).
According to the audited financial report for fiscal year 2024, CTD recorded net revenue from sales and service provision of VND21,045 billion, profit after tax of VND310 billion, respectively reaching 103% and 105% of the adjusted plan. The Board of Directors of the Company set a target for 2025 with consolidated revenue of VND25,000 billion, consolidated profit after tax of VND430 billion. Sharing the 2025 operating orientation, Coteccons' Board of Directors said that the Company will maintain growth in civil construction, strongly develop industrial construction and build a foundation for infrastructure construction, with a revenue growth of 18.8%, using the "conquering customers" strategy to increase the amount of work being implemented and resolve the backlog.
Notably, CTD will participate in international markets and new business lines, contributing greatly to the growth in both revenue and profit. Specifically, participating in 2 international markets and conducting M&A of 2 new businesses.
CTD plans to improve the current profit margin by increasing by 0.33% according to the price structure and principles in the bidding process.
Regarding the profit distribution and dividend payment plan, in fiscal year 2024, Coteccons will pay cash dividends at 10% (VND 1,000/share), the total dividend value will reach VND99.93 billion.
Mr. Bolat Duisenov, Chairman of the Board of Directors of Coteccons, said that the Company is still on the path to becoming an Industry Leader, building a good brand in Vietnam and globally. Despite being skepticized as a 'dreamer' in the construction industry, Coteccons has a specific strategy to pioneer and lead the development of the Vietnamese construction industry, while achieving great achievements in revenue growth and sustainable development
Presenting on production and business activities, Mr. Tran Ngoc Hai, Deputy General Director of the Commercial Business Division, presented some highlights. In the revenue structure, the industrial sector accounts for about 40%, the civil and other infrastructure sectors account for 55%. The value of newly signed contracts is more than VND22.7 trillion, the amount of backlog transferred to 2025 is VND20,000 billion.
"This amount of backlog is very impressive, ensuring the volume of work in the coming time. Notably, the winning rate last year was 58% - this number has grown positively compared to the previous winning rate," said Mr. Hai, emphasizing that CTD currently has 2,500 engineers, more than 500 managers, but the revenue divided by each engineer is more than VND13.2 billion/person/year, the highest number of CTD to date.
Comparing the average compound growth rate of the construction industry is 7-8%, but for Coteccons it is more than 30% in recent years. The company aims for a compound growth rate of 20-30% in the next 4-5 years. This has shown the difference in CTD's growth compared to the whole industry.
The 2025 plan is revenue of VND25,000 billion, gross profit of more than VND1,000 billion, profit margin of 4.34%, profit after tax of VND430 billion, new contract value of more than VND28.6 trillion, repeat sale rate increased (the "repeat sales" strategy - are projects that won bids/are designated by old investors).
Revealing the business results of the first quarter of the fiscal year 2025, Mr. Hai said that the expected revenue of the first quarter of 2025 is VND4,708 billion, an increase of more than 15% over the same period last year. The value currently participating in bidding is more than VND16.8 trillion, of which more than 50% are repeat sale customers that the Company is pursuing.
Regarding the growth strategy in the coming time, Mr. Hai said that the Government is promoting public investment in infrastructure projects, highways, airports, and social housing projects. The total investment is very large, up to more than VND900,000 billion. CTD is focusing on pursuing projects in the infrastructure sector, with the forecast that this will be a major revenue contributor in the following years. In addition, CTD is participating in a number of projects in foreign markets in two forms. The first is to accompany customers who have been working in Vietnam and want to expand their operations abroad. The second is to seek potential markets, joint ventures with local companies, or businesses of international stature, with available market share in the target market.
“A Vietnamese enterprise going abroad faces many difficulties and CTD is no exception. Expanding abroad can take up to 3 years or longer. We are aiming to build a basic foundation to enter those markets firmly, safely, and without haste at this time. These efforts will help the Company's revenue in 2025 be more sustainable and not dependent on fluctuations in the domestic market," said Mr. Hai.
Some concerns and concerns about bad debt and the provisioning figures in the past 2-3 years, Mr. Hai said that the Company has completed provisioning, always been transparent and promptly updated shareholders on developments that may affect the Company's operations. Currently, with the recovery of the market, CTD will continue to collect debts.
"We have established a number of debt management mechanisms: risk management, debt collection, clear actions with investors... We are confident that the goal for 2025 will not increase the provisioning value and not increase bad debt. It is expected to be possible to recover VND100 billion from previously provisioned debts," Mr. Hai shared,
At the General Meeting of Shareholders, the company's leaders presented the General Meeting a plan to issue shares to increase equity capital from owners' equity (bonus shares). Specifically, the exercise ratio is 20:1, shareholders owning 1 share will receive 1 right to receive newly issued shares and every 20 rights will receive 1 newly issued share. Accordingly, the number of shares expected to be issued is more than 4.9 million shares, the total value at par value is VND49.9 billion. The expected charter capital after issuance is VND1,086.3 billion.
In addition, Coteccons will use treasury shares to sell to employees (ESOP Program) with the expected number of treasury shares to sell is 1.5 million shares (accounting for 1.43% of the total number of outstanding shares), the selling price is 10,000 VND/share, the total selling value is VND15 billion.
In particular, Coteccons said the purpose is to retain talent, aiming for long-term commitment for key personnel in the company and its subsidiaries.
N.Nga
Source: VITIC/Tinnhanhchungkhoan