Coteccons leadership livestreamed for more than 4 hours, hoping to become a 'unicorn' contractor

Coteccons' leadership team livestreamed, sharing their business plan with shareholders.

90% of Coteccons' revenue comes from the domestic market.

On September 18th, Coteccons Construction Joint Stock Company (stock code: CTD) held a livestream session lasting over 4 hours where the chairman and general director took the stage to answer shareholders' questions regarding the development strategy of this leading Vietnamese contractor.

Mr. Bolat Duisenov, the company's chairman, said that Coteccons aspires to become a billion-dollar enterprise, resembling a "unicorn company," but also aims for steady growth over the years like a "gazelle company."

Bolat Duisenov stated that in the fiscal year 2024, which ended at the end of June, 90% of the company's revenue came from the domestic market.

"For international projects, our approach is to follow our existing investors and clients because they have placed their trust in Coteccons. Many of our clients are international businesses, so when expanding operations into other markets, they trust us to be their partner in overseas markets," said Mr. Bolat Duisenov.

The contractor's leadership also stated that the company has identified several potential markets and has a strategy for future expansion, which may include M&A (mergers and acquisitions) in overseas markets. Currently, Coteccons is constructing VinFast 's factory project in India.

The real estate market has not recovered as expected.

Mr. Vo Hoang Lam, General Director of Coteccons, noted that the real estate market has not recovered as quickly as expected, and many obstacles remain unresolved. However, Coteccons' business results remain positive thanks to diversification in revenue sources and markets.

In 2024, when the real estate market had not yet recovered, revenue from FDI accounted for more than 50% of the company's total revenue.

According to Mr. Lam, in the last three years, the revenue structure has shifted, with FDI projects increasing their share to over 50%. With the domestic market still unstable, businesses are compensated by foreign customers, achieving a balance between the civil and industrial sectors. Currently, revenue from industrial construction accounts for approximately 50%, civil construction over 40%, and tourism and resorts around 5%.

Meanwhile, Mr. Tran Ngoc Hai, CEO of Coteccons, said that the backlog (projects with signed contracts, outstanding orders) for the following years is worth approximately 30,000 billion VND, with the backlog for 2025 alone exceeding 22,000 billion VND.

In addition, the company has a healthy cash reserve, maintained at 3,800 - 4,000 billion VND.

At the end of the new fiscal year 2024 (July 2023 to June 2024), Coteccons' revenue reached VND 21,045 billion, an increase of 30.8% compared to fiscal year 2023, completing 118% of the old business plan (VND 17,793 billion), and achieving 105% of the new adjusted business plan (VND 20,000 billion).

Gross profit nearly doubled compared to the previous year, reaching VND 712 billion, while after-tax profit increased by 343%, reaching VND 299 billion. In 2024, Coteccons won bids worth VND 22,000 billion.

Source: https://tuoitre.vn/dan-lanh-dao-coteccons-livestream-hon-4-gio-ky-vong-tro-thanh-nha-thau-ky-lan-20240918215153901.htm