Coteccons (CTD) Sets FY2027 Profit Target of VND 1,050B, Lifts Foreign Room to 50%

Overview

Coteccons (HOSE: CTD) reported FY2026 net revenue of VND 34,340 billion, up 38%, and net profit of VND 788 billion, up 73%, at its FY2026 annual general meeting of shareholders. The contractor guided FY2027 to VND 42,000 billion revenue (+20%) and VND 1,050 billion net profit (+30%), and said it has completed raising its foreign ownership room to 50%.

Key Facts

• FY2026 net revenue: VND 34,340 billion, +38% year on year; net profit after tax: VND 788 billion, +73%.
• FY2027 plan: consolidated revenue of VND 42,000 billion (+20%) and net profit after tax of VND 1,050 billion (+30%).
• New contract awards in FY2026 reached VND 60,307 billion, lifting the backlog to a record of roughly VND 70,000 billion.
• Cash actually collected from receivables and client payments during the year was VND 39,476 billion, above booked revenue.
• Q1 FY2027: revenue of VND 11,270 billion and net profit after tax of VND 306 billion, close to 30% of the full-year plan.
• Foreign ownership room raised to 50%, with management targeting 100% during 2026.
• FY2030 revenue ambition of VND 68,000 billion, with 33% from diversified activities; ROE targeted at 15-18% per year for 2027-2030 versus about 10% in 2026.

What Happened

Speaking at the FY2026 AGM, Chairman Bolat Duisenov framed cash discipline as central to the construction business, saying that completing a project represents only half the journey and that the remaining half depends on collecting payment from clients to safeguard financial safety. The company reported VND 39,476 billion in actual cash collected during the year, a figure above reported revenue, which management presented as evidence of tighter working-capital control.

For Q1 FY2027, Coteccons booked revenue of VND 11,270 billion and net profit after tax of VND 306 billion. New contracts signed in the quarter totaled VND 14,519 billion, below the prior-year period, which Duisenov described as a deliberate step after the company tightened project selection criteria to prioritise contracts with higher safety and long-term value over scale alone. Management outlined a shift away from dependence on the residential real estate cycle through three pillars: direct-to-consumer (B2C) services, non-residential construction such as FDI industrial factories and infrastructure, and international projects. The company said it has deployed 150 Vietnamese engineers to overseas markets and is running six foreign projects, with potential work in Taiwan, the US and Georgia. It also cited digital transformation, an internal AI team, an ERP upgrade and partnerships with Microsoft and Workday as drivers of cost optimisation and site productivity.

Market Context

CTD trades on HOSE and closed at VND 66,000 on 20 October 2026. The stock sits in the construction and infrastructure segment, which remains sensitive to the pace of recovery in residential real estate and to public investment disbursement. The plan to lift foreign ownership room to 50%, with a 100% target for 2026, is positioned by management as a liquidity measure aimed at attracting institutional capital following Vietnam’s market upgrade. The article does not disclose the current foreign ownership ratio or the timeline for the remaining increase.

Strategic Significance

The core thesis is a deliberate shift in business mix rather than a volume story. Management expects non-residential construction, spanning FDI factories and infrastructure, to reach roughly 50% of total revenue, which would blunt the earnings swings tied to the domestic housing cycle. The B2C push applies the company’s large-scale execution discipline to individual customers, a segment with different margin and collection dynamics. The ROE target of 15-18% for 2027-2030, against about 10% in 2026, is the metric that will test whether diversification and digital cost savings translate into returns rather than merely revenue. The foreign room increase matters for index-weighted and institutional flows, but its effect depends on actual foreign participation.

What to Watch

• FY2027 quarterly filings to track progress against the VND 42,000 billion revenue and VND 1,050 billion profit plan, starting with the Q2 FY2027 release.
• New contract award values and backlog conversion, given the year-on-year decline in Q1 FY2027 signings.
• Disclosure of the current foreign ownership ratio and any further room expansion toward the 100% target.
• Revenue contribution from non-residential and overseas projects against the roughly 50% mix target.
• Receivables and cash collection trends, following the VND 39,476 billion collected in FY2026.