CC1 Q1/2026 Revenue Surges 62% YoY, Backlog Exceeds VND 42,500 Billion

Overview

CC1 (Tong Cong ty Xay dung So 1 - CTCP) reported a 62% year-on-year revenue increase to VND 2,290 billion in Q1/2026, driven by accelerated construction on major infrastructure projects. Operating cash flow turned strongly positive, and the company’s backlog of contracts exceeded VND 42,500 billion, providing visibility for future revenue.

Key Facts

• Q1/2026 revenue reached VND 2,290 billion, up 62% from VND 1,415 billion in Q1/2025.
• Net cash from operations was VND 735.4 billion in Q1/2026, compared to negative VND 481.6 billion in the same period last year.
• Gross profit rose 29% YoY to VND 109 billion, but pre-tax profit fell 6% due to input cost pressures.
• Total assets as of March 31, 2026 stood at VND 18,756 billion, up 9.3% from end-2025.
• Prepayments to suppliers increased 23.3% to VND 6,069 billion, reflecting active resource mobilization.
• Backlog value is estimated at over VND 42,500 billion, covering projects such as Ring Road 4 (Hanoi), Bao Loc – Lien Khuong Expressway, Cat Lai Bridge, and Long Hung Bridge (Dong Nai 2).

What Happened

CC1 released its Q1/2026 financial statements showing robust top-line growth as the company ramped up construction on a portfolio of large-scale infrastructure projects. Revenue surged 62% year-on-year to VND 2,290 billion, while operating cash flow improved dramatically to positive VND 735.4 billion from a negative VND 481.6 billion in Q1/2025, driven by better receivables management and inventory reduction.

Despite the revenue jump, gross profit increased only 29% to VND 109 billion, and pre-tax profit edged down 6%, indicating margin compression from volatile raw material prices. The company noted that rising energy costs and supply constraints are pressuring input prices. To mitigate this, CC1 has increased prepayments to suppliers and subcontractors, which rose 23.3% to VND 6,069 billion, ensuring stable input costs and continuous supply for its heavy construction schedule.

Market Context

CC1, listed on HOSE, operates in the competitive infrastructure construction sector. The stock has been supported by Vietnam’s accelerating public investment in transport infrastructure, including major projects under the national highway and ring road programs. The Q1 results confirm the revenue momentum from a record backlog, though margin pressures remain a concern. The broader construction sector has faced headwinds from rising steel and cement prices, but CC1’s strong cash flow and order book position it relatively well.

Strategic Significance

CC1’s massive backlog of over VND 42,500 billion provides multi-year revenue visibility, with key projects like Ring Road 4 and Cat Lai Bridge expected to drive activity through 2028 and beyond. The company’s proactive prepayment strategy helps lock in input costs and secure supply chains, which is critical in a volatile commodity environment. The swing to positive operating cash flow signals improved working capital management and project execution discipline. For long-term investors, CC1 offers exposure to Vietnam’s infrastructure buildout, but margin trends and the pace of project disbursements are key to earnings quality.

What to Watch

• Q2/2026 earnings release for margin trends and revenue growth sustainability.
• Progress on major projects: Ring Road 4, Cat Lai Bridge, and Bao Loc – Lien Khuong Expressway.
• Raw material price movements, especially steel and cement, and their impact on gross margin.
• Changes in prepayments and receivables as indicators of cash conversion cycle.
• Any new contract wins or project delays that could affect backlog realization.