Coteccons Delivers Record Quarterly Net Income on Improved Margins
Source: VietstockFinance
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Coteccons Construction Corporation (HOSE: CTD) has reported impressive consolidated financial results for Q3 of fiscal year 2024 (from 01/01-31/03/2024), with net revenue reaching nearly VND 4.666 trillion, a significant 49% increase year-over-year. The majority of this revenue was driven by construction contracts, which amounted to nearly VND 4.659 trillion, more than double the previous year.
Source: CTD
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After deducting cost of goods sold, gross profit surged to nearly VND 221 billion, quadruple the previous year. Gross profit margin also soared from 2% to 5%, attributed to significant project improvements. Meanwhile, financial revenue decreased by half to nearly VND 42 billion.
Most expenses during the quarter decreased, except for general and administrative expenses, which rose sharply by 150% to nearly VND 181 billion. Notably, CTD had to provision over VND 94 billion in Q3; excluding this provision, general and administrative expenses would have only increased by 45%.
Remarkably, CTD‘s other income surged to nearly VND 66 billion, compared to a loss of nearly VND 1 billion in the same period last year. According to the explanatory notes, this other income primarily comprises a gain of VND 58 billion from purchasing transactions at favorable prices.
Source: CTD
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Consequently, Coteccons recorded a net income of nearly VND 105 billion, 4.75 times higher than the same period last year. This result also marked CTD‘s return to a quarterly profit of hundreds of billions of VND since Q3 2020 (after 14 quarters).
| CTD Net Income from Q1 2020 to Q2 2024 |
For the first 9 months of fiscal year 2024 (from 01/07/2023-30/06/2024), Coteccons recorded a net revenue of nearly VND 14.450 trillion, an increase of 16%; while net income reached nearly VND 241 billion, 6.4 times higher than the same period last year.
Recently, Coteccons approved a revised business plan for the 2024 fiscal year, with consolidated revenue target increased from VND 17.793 trillion to VND 20.000-20.500 trillion, corresponding to a rise of 12-15%. The profit after tax target has also been raised to between VND 288-296 billion, an increase of 5-8%.
Favorable Business Environment Prompts Coteccons to Raise Profit Target by 5-8%
Compared to the new plan, construction giant Coteccons has achieved 72% of the revenue target and 81-84% of the profit after tax target after 9 months.
Increase in Workforce by Nearly 200
As of the end of March, CTD‘s total assets were nearly VND 20.933 trillion, a decrease of 2% compared to the beginning of the year. The majority of these assets are in the form of current assets, totaling over VND 18.590 trillion, down 7% and accounting for 89% of total assets. The largest portion of current assets includes trade receivables of over VND 11.233 trillion (CTD has made a provision for doubtful receivables of over VND 1.35 billion) and bank deposits of over VND 3 trillion.
Inventory stood at VND 2.924 trillion, down 7%. In contrast, construction-in-progress costs reached nearly VND 136 billion, a 316% increase, primarily concentrated in the Gem Sky World real estate project (Dong Nai) at nearly VND 87 billion and the My Phuoc 3 factory project at over VND 14 billion.
On the other side of the balance sheet, Coteccons’ total liabilities amounted to over VND 12.413 trillion, a decrease of 5% compared to the beginning of the period. Notably, CTD has incurred financial debt, both short-term and long-term, of over VND 1.500 trillion, an increase of 26% compared to the beginning of the period, representing 12% of the company’s total debt.
As of March 31, 2024, Coteccons had 2,182 employees, an increase of 197 people compared to June 30, 2023.
Thanh Tú
