Expecting the real estate market to be less difficult, Coteccons sets a revenue target of 25,000 billion VND

Mr. Bolat Duisenov - Chairman of the Board of Directors of Coteccons - said that the company has no plans to issue bonds in the near future. - Photo: THANH TUNG

On October 19th, Coteccons Construction Joint Stock Company (stock code: CTD) held its annual general meeting of shareholders for the 2024 fiscal year (from July 1st, 2023 to June 30th, 2024).

According to the audited report, Coteccons closed the 2024 fiscal year with revenue of VND 21,045 billion, an increase of 30.8% compared to 2023 revenue, while the construction industry only grew by 7.34% in the first half of 2024.

The revenue structure has shifted, with the industrial sector (mostly FDI projects) accounting for a large proportion at 50%, and the residential sector at approximately 45%.

Coteccons' gross profit for the fiscal year reached VND 713 billion (a 97.2% increase year-on-year). Net profit after tax was VND 310 billion, an increase of VND 10 billion after auditing and a 358% increase year-on-year.

According to Coteccons' leadership, the company has a backlog of 30,000 billion VND (remaining contracts not yet executed). The backlog for 2025 alone is approximately 20,000 billion VND. In the 2024 fiscal year, Coteccons won bids worth over 22,000 billion VND. The bid winning rate for the year reached 58%, while the industry average is 24%.

Mr. Tran Ngoc Hai, Deputy General Director of Coteccons, said that the company aims for a revenue of 25,000 billion VND, a gross profit of 1,086 billion VND, and a net profit of 430 billion VND in the 2024-2025 fiscal year.

If this plan is completed, Coteccons will achieve its highest revenue level since 2019.

According to Mr. Hai, this target is very challenging for the bidding team, with the planned value of new contracts signed in 2025 projected at 28,615 billion VND.

Ms. Nguyen Trinh Thuy Trang, Deputy General Director of Coteccons, stated that the company chooses to develop its business based on implementing sustainable development within the framework of ESG (environment, social, and governance).

As an industry leader, Coteccons will strive to promote ESG standards across the entire industry, contributing to solving specific problems in the construction sector and making in-depth contributions to overall development.

Responding to a question from Tuoi Tre Online regarding the possibility of restarting construction on "frozen" projects as well as starting new projects in Ho Chi Minh City, Mr. Tran Ngoc Hai said that the real estate market is at its bottom, with few construction projects, so even projects where Coteccons is the contractor are facing difficulties and have not yet resumed construction.

According to Mr. Hai, the company has been working with investors to resume construction, but it will take time to resolve the obstacles. He expects the picture to be brighter in 2025, with the real estate market in the South becoming as vibrant as in the North.

In addition, Coteccons' leadership also stated that the company has prepared resources to participate in infrastructure and public investment.

Mr. Bolat Duisenov, Chairman of the Board of Directors of Coteccons, stated that the company has no plans to issue bonds because its funding sources are sufficient, its credit rating has been upgraded (BBB+), its equity is stable, and its short-term revenue and profits are assured.

According to Mr. Bolat, participating in the construction of factories for FDI enterprises such as Suntory PepsiCo , Pandora, Lego, and Mapletree... is a great opportunity for Coteccons to follow these businesses into foreign markets. Currently, the company has opened an office in the US to promote overseas projects.

Leadership reshuffle ahead of congress

Just before the general meeting, Coteccons reshuffled its leadership, with Mr. Vo Hoang Lam stepping down as general director and assuming the position of deputy general director of Coteccons, concurrently serving as general director of Coteccons Business Unit 01.

Coteccons also dismissed Mr. Pham Quan Luc from his position as Deputy General Director so that he could assume the role of Deputy General Director of Coteccons Business Unit 01.

This contractor transferred Mr. Tran Ngoc Hai and Mr. Nguyen Chi Thien from their positions as CEO to the roles of Deputy General Director of Coteccons.

Mr. Nguyen Van Dua will assume the position of Deputy General Director of Coteccons, concurrently serving as Chief Financial Officer.

Ms. Nguyen Trinh Thuy Trang has been appointed as Deputy General Director of Coteccons, replacing her previous position as Director of Internal Affairs.

In response to questions about the reasons for these reassignments, a company representative stated that the restructuring aims to implement the 2025 strategy with two main focuses: maintaining core business growth and building a foundation for new business segments, expanding into international markets.

Source: https://tuoitre.vn/ky-vong-thi-truong-dia-oc-bot-kho-coteccons-dat-muc-tieu-doanh-thu-25-000-ti-dong-20241019160934596.htm