CTEC Construction Corporation (MCK: CTD, HoSE exchange) recently announced the completion of the acquisition of 100% capital in two companies, Sinh Nam Metal Co., Ltd (Vietnam) and UG Vietnam Mechanical and Electrical Company (UG M&E). These two companies have in common that they operate in the infrastructure sector and both have foreign investments.
Despite having established its reputation in the civil and industrial construction segment, with this deal, CTEC Construction Corporation has shown its ambition in the infrastructure sector, such as airports, transportation routes, and many other public projects.
Coteccons acquires two companies in the infrastructure sector.
Prior to this, in December 2023, CTEC Construction Corporation approved the proposal to acquire 100% capital of a company operating in the mechanical and electrical (M&E) field in order to expand its operations and diversify and enhance CTD’s brand in the market.
According to research, Sinh Nam Metal Co., Ltd (Vietnam) was established on June 25, 2008, and its main activities include the production of other metal products that are not classified elsewhere (The company specializes in providing design services for facade aluminum systems, fabrication, installation, and project management services for medium to high-end projects).
The company is headquartered in the Vietnam-Singapore Industrial Zone, Binh Hoa Ward, Thuan An Town, Binh Duong Province. Ms. Vu Hoai Thu holds the position of General Director and legal representative.
According to business registration changes on March 22, 2019, Sinh Nam Metal Co., Ltd (Vietnam) has a charter capital of over VND 25 billion, of which Kim Teck Industries Pte Ltd (Singapore) owns 50.24% and Kim Teck Corporation Pte Ltd (British Virgin Islands) holds 49.76% of the capital.
By December 2022, the company increased its capital to over VND 50 billion and continued to increase to VND 100 billion in November 2023, with no change in shareholder structure.
Sinh Nam Metal introduces a 10,000 m2 factory located in the VSIP Industrial Zone – Binh Duong with a production capacity of 300 m2 of windows and doors, 100-150 m2 of facade aluminum, 200-300 m2 of panels per day. In addition to apartment buildings and hotels, Sinh Nam Metal has previously completed glass partitions in houses, doors, and spider glass systems for Noi Bai Airport.
The remaining company is UG M&E, established in May 2007, specializing in the installation of mechanical and electrical (M&E) systems, with its headquarters located in Thu Duc District, Ho Chi Minh City.
According to business registration information in December 2015, UG M&E has a charter capital of VND 6.4 billion, 100% owned by Greatearth Pte. Ltd (Singapore). Mr. Tai Chee Yick (Singaporean nationality) holds the position of General Director. In February 2022, Mr. Lam Thanh Duc replaced Mr. Tai Chee Yick in the position.
According to the research, UG M&E’s parent company has carried out large-scale mechanical and electrical engineering projects in Singapore such as ION Orchard, Marina Bay Sands, Jewel Changi Airport.
It is known that as of December 31, 2023, CTEC Construction Corporation owns two direct subsidiary companies and two indirect subsidiary companies. Specifically, the direct ownership companies include Unicons Investment and Construction Company Limited and Covestcons Construction Company Limited.
In addition, Coteccons also invests in two affiliated companies, namely FCC Infrastructure Investment Corporation and Quang Trong Trading Joint Stock Company; and holds 14.43% of the capital in Ricons Investment and Construction Joint Stock Company (investment in another unit).
In terms of business performance, CTEC Construction Corporation recently announced the consolidated financial statements for the second quarter of 2024. This is the second quarter in which CTD changes its financial year (the 2024 financial year is fully counted for 12 months, from July 1, 2023, to June 30, 2024).
According to the consolidated financial statements for the second quarter of 2024 (from October 1, 2023, to December 31, 2023), CTD recorded a revenue of VND 5,660 billion, down 9% compared to the same period last year. However, after-tax profit increased 3.6 times compared to the same period last year, reaching VND 69 billion.
For the cumulative accounting period of 6 months ending December 31, 2023, CTD recorded a revenue of VND 9,783 billion, an increase of 5% compared to the same period. After-tax profit reached VND 136 billion, an increase of 9 times compared to the same period last year, and also the highest level since the first quarter of 2021.
