Declining gross profit margin worries shareholders, construction tycoon Coteccons chairman reassures

(Dan Tri) - Shareholders are worried that the decrease in gross profit margin threatens operating efficiency. The chairman of Coteccons affirmed that the company will have to find a balance point to avoid the situation where there are projects but the gross profit margin is too thin.

This morning (September 20), Coteccons Joint Stock Company (stock code: CTD) held an online dialogue with shareholders.

One of the issues that many shareholders are concerned about is that Coteccons' gross profit margin continues to decline, threatening its operating efficiency. In the 2025 fiscal year, the company's gross profit margin will be 3.13%, down slightly from 3.38% in the previous fiscal year.

Mr. Bolat Duisenov - Chairman of the Board of Directors - affirmed the view of not bidding to get the project at all costs. For example, in the industrial park project with foreign-invested enterprises (FDI), although the partner has good financial capacity and good cash flow, the bidding competition environment is very fierce. Therefore, the gross profit margin of the enterprise is only at the minimum level. The company must find a balance point, avoiding the situation where there is a project but the gross profit margin is too thin.

He said the company has cut costs to the minimum. In 2024, the company reduced costs by VND11 billion, upholding the spirit of "cutting costs like cutting nails".

However, during its operation, this construction company still encounters objective, uncontrollable external fluctuations such as increased raw material prices.

This year, competition is still fierce, but Coteccons representatives affirmed that they have their own advantages, as 70% of projects come from old customers, 30% are new bidding projects, affected by the general market.

Mr. Bolat Duisenov affirmed his stance of not bidding at all costs (Photo: CTD).

Assessing that the residential real estate market is growing and entering a new cycle of operation, the company's management also spoke about the commitment not to increase provisions for bad debts and receivables. The goal for 2026 is that the company will not make additional provisions for bad debts.

Another issue that was also discussed frankly in the dialogue was Coteccons' plan to divest from Ricons. As of June 30, Coteccons held 14.43% of Ricons' capital with an investment value of nearly VND304 billion. Mr. Bolat affirmed that he wanted to "divest from Ricons in the past, today and tomorrow he still wants to, but he has to wait for the right time when there is a reasonable and fair price".

According to Mr. Bolat, although being a major shareholder holding over 10% of capital, Coteccons has no one on the executive board, the supervisory board and is not welcome at Ricons.

The two sides do not have many similarities, there is no harmony or combination of strengths for mutual development. The two companies even compete directly with each other but strangely are shareholders.

Previously, Coteccons and Ricons also had disputes related to debts from construction contracts.

Source: https://dantri.com.vn/kinh-doanh/bien-lai-gop-giam-lam-co-dong-lo-chu-tich-trum-xay-dung-coteccons-tran-an-20250920122242726.htm