CC1 2024 Audited Net Profit Falls 17% Despite Record Revenue, Trading Restricted
This Aveluro analysis covers CC1 on UPCOM in the Construction & Materials sector. The classified event type is earnings miss, with negative sentiment and a deterministic market-impact score of 7.0/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from VnExpress - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
CC1 (Tổng công ty Xây dựng số 1) reported audited 2024 net profit of nearly VND 190 billion, down 17% year-on-year, despite record consolidated revenue of VND 11,820 billion (+16%). The construction firm also faces trading restrictions on UPCoM after delaying its audited financial report by more than 45 days. The profit miss and governance issue weigh on investor sentiment.
Key Facts
- Audited 2024 net profit: ~VND 190 billion, down 17% YoY and the lowest in five years.
- Consolidated revenue: VND 11,820 billion, a record high and up 16% YoY.
- Pre-tax profit: VND 270 billion, down 8% YoY.
- Net profit margin narrowed to 1.6% from 2.2% in 2023.
- Audited net profit was ~VND 37 billion lower than the company’s self-reported figure, due to auditor adjustments at subsidiaries and provisions.
- CC1’s stock (UPCoM) was placed under restricted trading (only Fridays) from early June 2025 for late audit filing.
- 2025 targets: revenue VND 18,607 billion (record) and pre-tax profit VND 492 billion.
What Happened
CC1 released its audited 2024 financial statements, showing net profit of nearly VND 190 billion, a 17% decline from 2023. The drop occurred despite a 16% revenue increase to a record VND 11,820 billion, driven mainly by construction contracting (VND 9,160 billion). The company attributed the profit squeeze to higher interest expenses and administrative costs.
The audited profit was about VND 37 billion lower than the unaudited figure. Management explained that the auditor adjusted profits at subsidiaries and associates and increased provisions for financial investments and bad debts. This is the first year CC1 worked with the current auditor, and the company cited coordination issues and complex large-scale projects as reasons for the delay.
Separately, the Hanoi Stock Exchange imposed trading restrictions on CC1 shares from early June 2025, limiting trades to Fridays only, due to the late submission of the audited report (over 45 days past deadline).
Market Context
CC1 trades on UPCoM at around VND 33,000-34,000 per share, giving a market capitalization of roughly VND 13,500 billion. The stock closed at VND 33,000 on June 7, 2025, down 2.94% on low volume of 200 shares. The trading restriction adds liquidity risk, and the profit decline contrasts with the broader construction sector’s recovery narrative tied to public infrastructure spending.
Strategic Significance
CC1’s profit erosion despite record revenue highlights margin pressure from rising costs and project complexity. The company’s 2025 targets imply a sharp turnaround (pre-tax profit of VND 492 billion vs. VND 270 billion in 2024), relying on major infrastructure contracts like Cát Lái Bridge, Long Hưng Bridge, and Ring Road 4. Success depends on execution and cost control. The audit delay and trading restriction raise governance concerns that may deter institutional investors.
What to Watch
- Q1 2025 earnings release to gauge margin recovery and revenue momentum.
- Resolution of trading restriction: submission of overdue reports and potential lifting of restrictions.
- Progress on key projects: Cát Lái Bridge, Long Hưng Bridge, and Ring Road 4.
- Auditor’s opinion on 2025 financials and any further adjustments.
- Changes in foreign ownership or institutional interest post-restriction.