Coteccons (CTD) Targets FY2027 Net Profit of VND 1,050 Billion, First Trillion-Dong Profit in 9 Years

Overview

Coteccons (CTD), Vietnam’s largest listed construction contractor, has set an FY2027 target of VND 42,000 billion in consolidated revenue and VND 1,050 billion in net profit, representing growth of 22% and 34% respectively. If achieved, this would be the company’s first trillion-dong profit since FY2018. The board also proposed no dividend for FY2026, signaling a focus on reinvestment and balance sheet strength.

Key Facts

• FY2027 revenue target: VND 42,000 billion, up 22% from FY2026 actual.
• FY2027 net profit target: VND 1,050 billion, up 34% from FY2026 actual.
• FY2026 actual revenue: VND 34,340 billion, up 38% year-on-year, exceeding the VND 30,000 billion plan by 14.5%.
• FY2026 actual net profit: VND 788 billion, up 72.7% year-on-year, exceeding the VND 700 billion plan by 12.6%.
• Backlog at end-FY2026: approximately VND 70,000 billion.
• Operating cash flow swung from negative VND 1,153 billion in FY2025 to positive VND 829 billion in FY2026.
• Board proposed no dividend and no fund appropriation for FY2026.
• Annual general meeting scheduled for October 20, 2026.

What Happened

Coteccons (CTD) released its AGM documents outlining FY2027 business plans and FY2026 profit distribution. The board proposes no dividend for FY2026, opting to retain earnings to support growth and financial stability. The AGM is set for October 20, 2026, where shareholders will vote on the targets.

The FY2027 plan emphasizes sustainable growth through enhanced governance, improved profitability, stricter capital and risk management, and execution capabilities. Strategic focuses include standardizing processes, ensuring quality growth in core construction, developing new growth drivers, investing in human resources, and expanding the partner ecosystem. The company reported FY2026 results that beat both revenue and profit plans, with a backlog of VND 70,000 billion providing revenue visibility.

Market Context

CTD shares closed at VND 58,200 on September 27, 2026, on the HOSE exchange. The construction sector has faced margin pressure from rising input costs and a sluggish real estate market, but Coteccons has outperformed peers through disciplined project selection and cost control. The broader VN-Index has been range-bound, with investors favoring companies showing earnings resilience and cash flow improvement. CTD’s swing to positive operating cash flow and backlog growth position it favorably within the sector.

Strategic Significance

The return to trillion-dong profit would validate Coteccons’ restructuring efforts since 2020, when it faced governance challenges and project losses. The focus on higher-quality revenue, risk management, and new growth drivers such as industrial and infrastructure construction could reduce reliance on residential real estate. The no-dividend policy preserves capital for working capital needs and potential investments, aligning with the long-term goal of sustainable growth. For investors, the key is whether CTD can maintain margin expansion amid competitive bidding and input cost volatility.

What to Watch

• AGM approval of FY2027 targets on October 20, 2026.
• FY2027 quarterly earnings reports for progress against the VND 1,050 billion profit target.
• Backlog conversion and new contract wins, especially in industrial and infrastructure segments.
• Operating cash flow trend in FY2027.
• Any updates on dividend policy for FY2027.