AsemconnectVietnam - At the Shareholder Dialogue event held on June 15th, the leadership of Coteccons Construction Joint Stock Company (HoSE: CTD) spent considerable time sharing its development strategy for the next phase, amidst strong revenue and profit growth but less positive stock price performance.

Shifting the Focus to “Quality Growth”
Speaking at the Shareholder Dialogue program, Mr. Bolat Duisenov, Chairman of the Board of Directors of Coteccons, stated that for fiscal year 2025-2026 (ending June 30th, 2026), the company estimates revenue of over VND30,000 billion, an increase of approximately 30% compared to the previous year and exceeding the set plan. Profit is expected to increase by approximately 50%, significantly higher than the initial target which the leadership had considered quite ambitious.
According to Mr. Bolat, the positive aspects lie not only in revenue and profit growth but also in the continued positive state of operating cash flow, reflecting the company's sound financial foundation.
In the first nine months of fiscal year 2026, Coteccons recorded VND642 billion in after-tax profit. At the current growth rate, full-year profit is estimated at approximately VND680 billion.
Coteccons' leadership stated that the company's revenue has maintained an average annual growth rate of approximately 25% since the pandemic. This result stems from better risk control, enhanced financial discipline, and the gradual development of competitive advantages in key segments.
According to Mr. Bolat, Coteccons' growth strategy is currently based on three main drivers: urbanization, industrialization, and expansion into international markets.
Regarding urbanization trends, the company sees a huge demand for infrastructure and utility projects such as bridges, roads, airports, schools, hospitals, and projects serving urban development. This is a sector that is contributing increasingly to the company's business results.
In the industrial sector, Coteccons assesses that Vietnam is enhancing its position in the global supply chain, attracting more and more high-tech manufacturing projects, data centers, and factories with high technical content. The company is investing in its capacity to participate more deeply in this segment and expects to announce more new projects soon.
The third driving force is the "Going Global" strategy. Although revenue from overseas markets currently contributes a modest proportion, Coteccons remains committed to the goal of bringing the construction capabilities of Vietnamese businesses to the international market. In fiscal year 2027, the company aims to increase overseas revenue by 3-4 times compared to the current level.
The overarching message emphasized by the Chairman of Coteccons is that the company is shifting from a phase of rapid growth to one of quality growth.
“If we have reached a revenue scale exceeding $1 billion, the important thing is no longer to chase growth at all costs, but to build long-term competitiveness and answer the question of why customers choose Coteccons,” Mr. Bolat shared.
The management believes that the construction market is entering a phase where demand exceeds supply capacity, creating favorable conditions for capable contractors. However, Coteccons will carefully select projects to ensure efficiency and quality of growth.
Mr. Tran Ngoc Hai, Deputy General Director of Coteccons, said that the company not only seeks projects that generate good revenue and profit but also prioritizes projects with high difficulty to enhance the capabilities of its team. The Lego factory project is a prime example, not only contributing to business results but also helping the company accumulate experience to participate in future international and high-tech projects.
Simultaneously, Coteccons aims to improve its profit margin in a sustainable manner. After many years maintaining around 3.4%, the profit margin for fiscal year 2026 is expected to reach approximately 4%.
According to company leaders, fluctuations in raw material prices and labor costs in recent years have put significant pressure on the entire construction industry. However, thanks to its risk management system, standardized bidding, procurement, and project management processes, and its ability to execute highly complex projects, Coteccons has maintained better-than-average business performance.
What did the management say about the nearly 20% drop in share price?
One of the most important issues for shareholders at the dialogue was the performance of CTD shares. Over the past two months, CTD's share price has fallen by nearly 20% despite continued improvements in business results.
Mr. Tran Ngoc Hai stated that CTD is currently trading at a P/E ratio of approximately 10 times, a valuation range typically seen during periods of market difficulty. According to him, considering the prospects of the construction industry and Coteccons' current growth rate, this is a relatively low valuation.
However, the management team affirmed that they will not allocate resources to chasing short-term stock price fluctuations.
“The market has its own perspective at each point in time. What we can control is operational efficiency, project quality, risk management, customer relationships, and the competitiveness of the business,” Mr. Hai said.
According to the company's announcement, the backlog value has now exceeded VND65,000 billion, creating an important foundation for growth in the coming years.
Mr. Bolat likened the stock market to a person whose emotions are constantly changing. According to him, stock prices may fluctuate in the short term, but the ultimate value of the business will be reflected in its business results, competitiveness, and management quality.
Besides the growth story, many shareholders also raised questions about issues related to partners and risk management.
Regarding Vingroup's establishment of Vincons, Mr. Nguyen Chi Thien, Deputy General Director of Coteccons, said this is a normal development as the scale of projects increases. Coteccons maintains a cooperative relationship with Vingroup on many key projects.
Regarding the outstanding debt to Ricons, Chairman Bolat stated that both parties have agreed on the amount of the payment obligation and no new disputes have arisen. The company considers this a payable debt and is carrying out the necessary reconciliation steps before payment. At the same time, Coteccons still intends to divest from Ricons when market conditions are suitable.
Regarding legal risk management, the company's leadership stated that Coteccons focuses on strictly controlling compliance throughout the entire system. Given the abundant workload, the company has the right to select projects that align with its governance standards and operating principles.
Concluding the dialogue, Coteccons' leadership further emphasized its goal of building a sustainably growing enterprise with international competitiveness and maintaining financial discipline. Accordingly, instead of focusing on short-term stock price fluctuations, the company chooses to invest in core competencies, project quality, and long-term value for shareholders.
N.Nga
Source: VITIC/Dau tu Chung khoan