Construction tycoon Coteccons explains billion-dollar revenue but 'thin' profit

At the 2025 Annual General Meeting of Shareholders held on October 20, many shareholders of Coteccons Construction Joint Stock Company (HoSE: CTD) questioned the fact that Coteccons' revenue is very large, worth billions of USD. However, after-tax profit is only equivalent to 2% of revenue. This is a very low profit level.

Coteccons' 2025 Annual General Meeting of Shareholders took place at noon on October 20 in Ho Chi Minh City. (Photo: Dai Viet)

In fiscal year 2025 (from July 1, 2024 to June 30, 2025), Coteccons recorded net revenue of nearly VND 24,900 billion. Profit after tax only reached VND 456 billion, but compared to the same period last year, it increased by 47%.

Responding to the question of high revenue but low profit, Mr. Tran Ngoc Hai, Deputy General Director of Coteccons, shared that the construction market is not too bright and there is a lot of competition. Besides, there are fluctuations in material and labor prices. This affects the company's profit.

“When we take on a project, we carefully consider the safety of the project and have a clear plan to complete the project. We avoid prolonged construction leading to high costs,” said Mr. Hai.

According to Mr. Hai, in the 2026 fiscal year, Coteccons will not make additional provisions. The company also plans to handle bad debts. The handling of bad debts will depend on project progress and customer plans. He hopes that this year's profits will improve thanks to the handling of bad debts from previous years.

Coteccons participates in many large, key national projects. (Photo: D.V)

As of June 30, Coteccons' total assets reached over VND29,700 billion, an increase of over VND6,800 billion after one year. Owner's equity reached nearly VND9,000 billion, of which the development investment fund was over VND4,400 billion and undistributed accumulated profits reached VND1,054 billion.

According to the Board of Directors, revenue in the first quarter of the 2026 fiscal year (July 1 - September 30, 2025) reached VND 7,400 billion, an increase of 56.6%, while the value of unrealized contracts reached a record level of VND 51,600 billion - creating great room for growth in the coming years.

In the period 2025 - 2029, Coteccons aims to increase revenue by an average of 20 - 30% per year, while participating more strongly in public investment projects and expanding to the international market.

Responding to shareholders about the overseas investment strategy, Mr. Bolat Duisenov, Chairman of Coteccons, said that the company has pursued this in recent years, and has achieved remarkable results so far.

Coteccons has completed projects in Cambodia, Laos, India, and is present in the US, Saudi Arabia, and Taiwan. The foreign investment strategy will focus on markets such as the US, the Middle East, and Taiwan. In addition, the company will not miss markets such as Georgia or Kazakhstan.

According to Mr. Bolat Duisenov, when expanding into international markets, businesses will choose a different direction, focusing on niche markets instead of trying to "do everything".

Currently, Coteccons is the construction company with the highest revenue in Vietnam. In the fiscal year 2026 (July 1, 2025 - June 30, 2026), the company plans to have a revenue of VND30,000 billion and a profit after tax of VND700 billion.

In the revenue structure of fiscal year 2025, civil construction accounts for more than 50% (equivalent to VND 12,541 billion), industry accounts for more than 30% (VND 8,494 billion), other sectors account for more than 10%.

It is worth noting that the construction giant has recorded revenue from the infrastructure sector (about 500 billion VND) - marking the first "harvest" in this field after 3 years of pursuit.

Currently, Coteccons has set foot in large infrastructure projects such as the Apec complex in Phu Quoc, Phu Quoc airport, Long Thanh airport cargo terminal, Gia Binh airport. The revenue structure is inclined towards the domestic market with a proportion of 70%, the rest are foreign projects.

DAI VIET

Source: https://vtcnews.vn/ong-trum-xay-dung-coteccons-ly-giai-doanh-thu-ty-do-nhung-loi-nhuan-mong-ar972159.html