Coteccons (CTD) Sets FY2027 Profit Target of VND 1,050B, Skips Dividend

Overview

Coteccons (CTD), listed on HOSE, has set FY2027 targets of VND 42,000 billion in consolidated revenue and VND 1,050 billion in net profit, according to the company’s annual general meeting documents. The targets imply growth of 22% in revenue and 33% in profit over audited FY2026 results, but the builder will not pay a dividend despite net profit rising nearly 73% to VND 788 billion.

Key Facts

• FY2027 targets: revenue of VND 42,000 billion (+22%) and net profit of VND 1,050 billion (+33%).
• Audited FY2026 net revenue reached VND 34,340 billion, up 38% year on year.
• FY2026 net profit was VND 788 billion, up nearly 73% and 12.6% above the VND 700 billion plan.
• No dividend for FY2026; all VND 788 billion is retained, lifting accumulated undistributed profit to VND 1,741 billion as of 30 June 2026.
• Inventory rose 66% to VND 9,906 billion from VND 5,964 billion; short-term borrowings rose 47.5% to VND 4,401 billion.
• Interest expense reached VND 351 billion, nearly 2.5 times the VND 143 billion recorded in FY2025.
• The AGM is scheduled online for the morning of 20 October.

What Happened

Coteccons published documents for its FY2026 annual general meeting, which will be held online on 20 October because the company’s fiscal year runs from July to the following June. The board set FY2027 guidance of VND 42,000 billion in consolidated revenue and VND 1,050 billion in after-tax profit. Tan Chin Tiong, independent board member and head of the Audit and Risk Subcommittee, said the order backlog carried into the new fiscal year stands at VND 70,000 billion, more than 1.6 times the revenue target.

The company will make no fund appropriation and pay no dividend, retaining the entire VND 788 billion FY2026 profit. That follows cash dividends of 10% (VND 1,000 per share) in both 2024 and 2025. The Supervisory Board flagged working-capital pressure: operating cash flow turned positive at VND 829 billion from negative VND 1,154 billion a year earlier, but inventory jumped 66% and short-term borrowings rose 47.5%. Receivables stood at VND 15,326 billion, up 3%. The board also noted some projects are running at a loss and recommended criteria to flag “red zone” projects early, faster collections, and tighter monitoring of the VND 1,400 billion raised from a public bond issue in early 2026 (14 million bonds, three-year tenor, 9% fixed coupon).

Market Context

CTD closed at VND 58,200 on 26 September 2026 on HOSE. The stock sits in the construction and materials sector, which has been sensitive to real-estate project clearance, input costs and contractor cash cycles. The FY2026 beat, with profit 12.6% above plan, contrasts with the balance-sheet strain the Supervisory Board highlighted, a tension investors will weigh against the FY2027 guidance.

Strategic Significance

The retention of all FY2026 earnings, after two years of 10% cash dividends, signals that Coteccons is prioritising balance-sheet liquidity over shareholder returns as it scales revenue toward VND 42,000 billion. The VND 70,000 billion backlog supports the top-line thesis, but the 66% inventory build and 47.5% rise in short-term debt mean growth is being funded increasingly by borrowings, with interest expense already up nearly 2.5 times. For long-term holders, the key question is whether faster collections and project discipline can convert backlog into cash before leverage and financing costs erode margins.

What to Watch

• AGM outcome on 20 October, including approval of the FY2027 targets and any dividend discussion.
• Quarterly updates on inventory and short-term borrowings through FY2027.
• Progress on collections and the proposed “red zone” project criteria.
• Cash-flow and interest-expense trends in the FY2027 interim reports.
• Deployment of the VND 1,400 billion bond proceeds and the repayment schedule.