Coteccons (CTD) FY2026 Profit Jumps 73% on Record VND 65,500B Backlog

Overview

Coteccons (CTD), listed on HOSE, reported audited FY2026 net revenue of more than VND 34,339.6B, up 38% year on year, and after-tax profit of over VND 788.3B, up 73%. The contractor also disclosed a record order backlog of nearly VND 65,500B and proposed an FY2027 profit target of VND 1,050B, alongside a staff bonus of up to 15 months’ salary for about 500 employees.

Key Facts

• FY2026 (1 July 2025 to 30 June 2026) net revenue: over VND 34,339.6B, up 38% year on year.
• FY2026 after-tax profit: over VND 788.3B, up 73%; pre-tax profit exceeded VND 1,019.9B.
• Gross profit from sales and services: VND 1,446B, up 77%, on scale expansion and site-cost optimisation.
• Order backlog: nearly VND 65,500B as of the end of Q3 FY2026, roughly twice full-year revenue.
• Bonus policy: about 500 staff across four projects received an extra 2 to 15 months’ salary; two salary adjustments totalling 12% of the payroll fund were made versus a market benchmark of 7.8%.
• FY2027 targets: consolidated revenue of VND 42,000B (+22%) and after-tax profit of VND 1,050B (+34%).
• The FY2027 plan is set out in a draft resolution for the annual general meeting expected in October.

What Happened

Coteccons Joint Stock Company released its audited consolidated financial statements for FY2026, the fiscal year running from 1 July 2025 to 30 June 2026. Net revenue reached more than VND 34,339.6B, an increase of 38% over the prior year, while gross profit from sales and services rose 77% to VND 1,446B. The company attributed the margin expansion to a larger project base combined with tighter control of site costs. Pre-tax profit passed VND 1,019.9B and after-tax profit came in above VND 788.3B, a 73% increase.

The results were supported by a record contract backlog of nearly VND 65,500B at the end of Q3 FY2026, close to double the full-year revenue figure. On the back of that, Coteccons approved two salary adjustments during the year worth the equivalent of 12% of its payroll fund, above the 7.8% market reference, and awarded extra bonuses of 2 to 15 months’ salary to roughly 500 employees across four projects that met cost-saving and profit commitments. A draft resolution for the annual general meeting, expected in October, sets FY2027 consolidated revenue of VND 42,000B and after-tax profit of VND 1,050B.

Market Context

CTD closed at VND 59 on 1 October 2026, up 0.17%, on volume of 27,300 shares, a thin print that gives little directional signal on its own. The stock trades on HOSE within the construction and materials sector, which has been sensitive to public investment disbursement, residential property recovery and input-cost pressure. Coteccons’ return to profit growth above 70% contrasts with the sector’s recent pattern of margin compression, and the record backlog is the clearest evidence yet that private and industrial construction demand is rebuilding after the restructuring period.

Strategic Significance

The core thesis for CTD is no longer recovery but execution on a backlog that now covers roughly two years of revenue. If the FY2027 plan is met, after-tax profit would return to the trillion-dong mark for the first time in nine years, a milestone that would validate the internal restructuring and cost-control programme. The 12%-of-payroll salary adjustment and the 15-month bonuses are a retention signal in a labour-scarce engineering market, and they also imply management is confident the backlog converts to cash. The main risk is concentration: the four projects that generated the largest bonuses suggest profit is still driven by a small number of contracts.

What to Watch

• Annual general meeting in October and the formal approval of the FY2027 revenue and profit targets.
• Backlog disclosure for Q1 FY2027, to confirm the VND 65,500B figure is being replenished rather than drawn down.
• Gross margin trend in the next quarterly report, given the 77% gross profit jump in FY2026.
• Progress on new contract awards, particularly in industrial, data-centre and public infrastructure segments.
• Any foreign-ownership or block-trade filings, with CTD volume currently light at 27,300 shares.