Coteccons (CTD) Targets 9-Year High Profit of VND 1,050B in FY2027

Overview

Coteccons (HOSE: CTD) has set an FY2027 plan of VND 42,000 billion in revenue and VND 1,050 billion in after-tax profit, increases of 22% and 34% respectively, according to documents prepared for its annual meeting on 20 October. If achieved, the profit would be the company’s highest in nine years, since 2018. The board also proposes paying no FY2026 dividend and retaining the full VND 788 billion of prior-year profit.

Key Facts

• FY2027 targets: revenue of VND 42,000 billion, up 22% year-on-year, and after-tax profit of VND 1,050 billion, up 34%.
• FY2026 actuals: revenue of VND 34,340 billion (+38%) and after-tax profit of VND 788 billion (+73%).
• No dividend for FY2026; all VND 788 billion of FY2026 profit to be retained for business operations.
• In each of the two prior years, Coteccons paid a 10% cash dividend, equal to VND 1,000 per share.
• Contract and project value at the end of FY2026 was approximately VND 70,000 billion.
• New work spans civil construction and infrastructure, including Gia Bình airport, Cần Giờ bridge, the APEC Phú Quốc Convention Centre and Global City.
• Headcount exceeded 4,080 employees at the end of last year, up about 1,000 year-on-year.
• The annual meeting is scheduled for 20 October.

What Happened

The figures come from company documents prepared for the annual general meeting on 20 October, as reported by local financial media. Coteccons, formally Công ty cổ phần Xây dựng Coteccons, has used a fiscal year running from 1 July to 30 June since 2023, so FY2027 covers July 2026 through June 2027. The profit target of VND 1,050 billion would be the highest since 2018 and the largest in the company’s operating history on the revenue line, according to the filing.

Alongside the business plan, the board will ask shareholders to approve no appropriation to reserves and no dividend for FY2026, retaining the entire VND 788 billion of last year’s after-tax profit for production and business activities. That reverses two consecutive years of 10% cash dividends, equivalent to VND 1,000 per share. The filing does not disclose a specific use of proceeds beyond general working capital for operations.

Market Context

CTD trades on the Hồ Chí Minh Stock Exchange (HOSE) and closed at VND 58,200 on 27 September 2026. The stock sits in the construction and materials sector, which has been sensitive to residential real-estate liquidity and public infrastructure disbursement. Coteccons’ FY2026 results, with revenue up 38% and profit up 73%, already marked a sharp recovery from the sector downturn, and the FY2027 plan extends that trajectory. An FPT Securities report from August noted that civil construction remains the main revenue driver, with work from familiar developers such as Sun Group, Masterise and Vinhomes.

Strategic Significance

The plan signals a deliberate shift in capital allocation: rather than distributing cash, Coteccons is retaining earnings to fund a larger, more technically demanding project pipeline. FPTS highlighted that the company is expanding into specialised works such as the Hà Nội Opera House, the Government Guest House and the APEC Phú Quốc Convention Centre, which reduces dependence on the residential property cycle and supports steadier revenue. For long-term investors, the thesis rests on whether a VND 70,000 billion backlog can be converted into margin rather than merely volume, and whether the dividend pause is temporary. The company’s track record on landmark projects, including Landmark 81 and the USD 1 billion LEGO factory in Hồ Chí Minh City, underpins its ability to bid for complex work.

What to Watch

• Shareholder vote on the FY2027 plan and the no-dividend proposal at the 20 October annual meeting.
• FY2027 interim results for the period ending 31 December 2026, the first checkpoint against the VND 42,000 billion revenue target.
• Backlog disclosure and new contract awards, particularly the APEC Phú Quốc and Cần Giờ bridge packages.
• Gross margin trend, to test whether the shift toward specialised projects lifts profitability.
• Any revision to the dividend policy for FY2027 once the retained capital is deployed.