CC1 2024 Net Profit Falls 17% to 5-Year Low Despite Record Revenue

Overview

Construction Corporation No. 1 (CC1) reported audited 2024 net profit of nearly VND 190 billion, down 17% year-on-year and the lowest in five years, despite record consolidated revenue of VND 11,820 billion (+16%). The profit miss was driven by higher interest and administrative costs, as well as audit adjustments at subsidiaries. The company’s shares on UPCoM have been restricted to weekly trading due to a delayed audit filing.

Key Facts

• CC1’s 2024 audited net profit was VND 190 billion, down 17% YoY and the lowest in five years.
• Consolidated revenue reached a record VND 11,820 billion, up 16% YoY.
• Net profit margin fell 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 adjustments at subsidiaries and provisions.
• CC1 is part of the Vietur consortium building the Long Thanh International Airport passenger terminal, valued at approximately VND 35,000 billion.
• The company’s shares on UPCoM trade at around VND 34,000, with a market cap of VND 13,500 billion, but are restricted to Friday-only trading since early June 2025 due to delayed audit filing.
• CC1 targets 2025 consolidated revenue of VND 18,607 billion and pre-tax profit of VND 492 billion.

What Happened

CC1 released its audited 2024 financial statements, revealing a 17% drop in net profit to VND 190 billion, the lowest in five years. The company attributed the decline to higher interest expenses and administrative costs, as well as audit adjustments that reduced profit by VND 37 billion compared to the company’s preliminary figures. The adjustments included changes in profit at subsidiaries and associates, and additional provisions for financial investments and bad debts.

Despite the profit miss, CC1 achieved record revenue of VND 11,820 billion, driven primarily by its construction segment (VND 9,160 billion). The company is a key contractor for the Long Thanh International Airport project, participating in the passenger terminal, internal transport, and parking garage packages. Management noted that the delayed audit filing was due to first-time coordination with a new auditor and disagreements over certain accounting treatments.

Market Context

CC1 shares trade on UPCoM at around VND 34,000, giving a market capitalization of VND 13,500 billion. The stock has been restricted to Friday-only trading since early June 2025 after the company failed to submit its audited financial statements within 45 days of the deadline. The share price closed at VND 33,000 on June 7, 2025, down 2.94% on thin volume of 200 shares. The profit decline and trading restriction add to investor uncertainty, though the company’s involvement in major infrastructure projects provides a long-term growth narrative.

Strategic Significance

CC1’s profit decline highlights margin pressure in the construction sector, where rising input costs and financial charges can erode profitability even as revenue grows. The company’s heavy reliance on large-scale projects like Long Thanh Airport and upcoming contracts for Cat Lai Bridge, Long Hung Bridge, and Ring Road 4 in Hanoi suggests that revenue visibility is strong, but margin recovery depends on cost control and project execution. The trading restriction is a governance concern that may weigh on investor confidence until resolved.

What to Watch

• Resolution of the trading restriction: CC1 must submit its audited financials to HNX to lift the restriction.
• Q1 2025 earnings release: expected to show whether margin trends are improving.
• Progress on Long Thanh Airport and other major projects: any delays or cost overruns could affect profitability.
• New contract wins in metro and infrastructure segments, which management says will diversify revenue.
• Auditor’s opinion on 2025 financials: continued adjustments could signal deeper accounting issues.