Coteccons (CTD) Targets VND 1,050B FY2027 Profit, Highest in Nine Years

Overview

Coteccons (HOSE: CTD), Vietnam’s largest listed construction contractor, has set FY2027 targets of VND 42,000 billion in revenue and VND 1,050 billion in after-tax profit, according to shareholder meeting documents. The plan implies growth of 22% in revenue and 34% in profit, which would mark the company’s highest earnings since 2018. The board also proposes retaining the entire VND 788 billion FY2026 profit and paying no dividend for 2026.

Key Facts

• FY2027 targets: revenue of VND 42,000 billion, up 22%, and after-tax profit of VND 1,050 billion, up 34%.
• If achieved, VND 1,050 billion would be CTD’s highest profit in nine years, since 2018.
• FY2026 revenue reached VND 34,340 billion, up roughly 38% from VND 24,885 billion a year earlier.
• FY2026 gross profit rose 77.4% to nearly VND 1,446 billion; gross margin improved from about 3.28% to 4.21%.
• FY2026 after-tax profit of VND 788 billion will be fully retained; no dividend is planned for 2026.
• CTD paid cash dividends of 10% (VND 1,000 per share) in each of the two preceding years.
• The annual general meeting is scheduled for 20 October.

What Happened

The targets are set out in documents prepared for the annual general meeting of shareholders, expected on 20 October, according to the company filing. Coteccons moved to a fiscal year running from 1 July to 30 June starting in 2023, so FY2027 covers July 2026 through June 2027. Alongside the business plan, the board will ask shareholders to approve not setting aside reserve funds and not paying a 2026 dividend, with the full VND 788 billion of FY2026 after-tax profit retained for production and business operations.

The guidance follows a strong FY2026. Revenue from sales and services exceeded VND 34,340 billion, up about 38%, while cost of goods sold rose 36.6% to VND 32,894 billion. Because revenue grew faster than costs, gross profit reached nearly VND 1,446 billion, up 77.4%, lifting the gross margin to 4.21%. Financial revenue rose about 59% to VND 407.1 billion, though financial expenses climbed roughly 70% to nearly VND 349.7 billion and general and administrative costs more than doubled to over VND 676.2 billion. Net operating profit rose 54.8% to more than VND 825.6 billion, with other profit of over VND 194.4 billion, mainly from other income of more than VND 208.6 billion, providing a further boost.

Market Context

CTD trades on the HOSE and closed at VND 58,200 on 27 September 2026. The stock sits in the construction and materials sector, which has faced pressure from raw material and labour costs and aggressive price competition. Coteccons’ margin recovery, from 3.28% to 4.21% gross margin, runs against that sector backdrop and is the clearest evidence that the company’s restructuring and backlog mix are translating into profitability. The decision to retain earnings rather than repeat the 10% cash dividend signals a shift toward internal funding.

Strategic Significance

The retention proposal is the core of the story for long-term holders. After two years of 10% cash dividends, Coteccons is prioritising balance-sheet capacity over payout, which matters for a contractor that must fund working capital on large projects and may need to support bidding on bigger-ticket work. A VND 1,050 billion profit target would restore earnings to 2018 levels, when the company was the undisputed sector leader before losing market share to new entrants. Achieving it would validate the margin-led recovery rather than a volume-only rebound, and would give CTD a stronger equity base to compete for infrastructure and industrial projects without leaning on debt.

What to Watch

• The annual general meeting on 20 October, including shareholder approval of the no-dividend and no-reserve-fund proposals.
• FY2027 first-half results (July to December 2026) for evidence that revenue is tracking toward VND 42,000 billion.
• Gross margin trend: whether the 4.21% FY2026 level holds as new contracts are executed.
• General and administrative cost growth, which more than doubled in FY2026 and could pressure the profit target.
• New contract awards and backlog disclosures, which indicate whether the revenue plan is underpinned by signed work.