Construction Giant Coteccons Explains Billion-Dollar Revenue with Slim Profit Margins

At the 2025 Annual General Meeting of Shareholders held on October 20, several shareholders of Coteccons Construction Joint Stock Company (HoSE: CTD) raised concerns about the company’s revenue, which stands at billions of USD, while its after-tax profit is only 2% of the revenue. This profit margin is considered very low.

In the 2025 fiscal year (July 1, 2024 – June 30, 2025), Coteccons recorded a net revenue of nearly VND 24.9 trillion. The after-tax profit reached VND 456 billion, a 47% increase compared to the same period last year.

Addressing the concern about high revenue but low profit, Mr. Tran Ngoc Hai, Deputy General Director of Coteccons, explained that the construction market is not yet very promising and faces intense competition. Additionally, fluctuations in material and labor costs have impacted the company’s profitability.

“When we take on a project, we carefully consider its safety and have a clear plan for completion to avoid prolonged construction, which can lead to increased costs,” said Mr. Hai.

According to Mr. Hai, in the 2026 fiscal year, Coteccons will not set aside additional provisions. The company also plans to address non-performing loans. The resolution of these loans will depend on project progress and customer plans. He hopes that this year’s profit will improve due to the handling of non-performing loans from previous years.

As of June 30, Coteccons’ total assets reached over VND 29.7 trillion, an increase of more than VND 6.8 trillion in one year. The owner’s equity was nearly VND 9 trillion, including a development investment fund of over VND 4.4 trillion and undistributed accumulated profits of VND 1,054 billion.

According to the management, the revenue for the first quarter of the 2026 fiscal year (July 1 – September 30, 2025) reached VND 7.4 trillion, a 56.6% increase, while the value of unexecuted contracts hit a record high of VND 51.6 trillion, providing significant growth potential for the coming years.

From 2025 to 2029, Coteccons aims for an average revenue growth rate of 20-30% per year, while actively participating in public investment projects and expanding into international markets.

In response to a shareholder’s question about the overseas investment strategy, Mr. Bolat Duisenov, Chairman of Coteccons, stated that the company has been pursuing this strategy in recent years and has achieved significant results.

Coteccons has completed projects in Cambodia, Laos, India, and has a presence in the US, Saudi Arabia, and Taiwan. The international investment strategy will focus on markets such as the US, the Middle East, and Taiwan. Additionally, the company will not overlook markets like Georgia and Kazakhstan.

According to Mr. Bolat Duisenov, when expanding into international markets, the company will take a unique approach, focusing on niche markets rather than trying to do everything.

Currently, Coteccons is the construction company with the highest revenue in Vietnam. For the 2026 fiscal year (July 1, 2025 – June 30, 2026), the company plans to achieve a revenue of VND 30 trillion and an after-tax profit of VND 700 billion.

In the 2025 fiscal year’s revenue structure, civil construction accounted for over 50% (VND 12,541 billion), industrial construction over 30% (VND 8,494 billion), and other segments over 10%.

Notably, the construction giant recorded revenue from the infrastructure segment (approximately VND 500 billion), marking its first “harvest” in this field after three years of pursuit.

Coteccons has already entered major infrastructure projects such as the Apec complex in Phu Quoc, Phu Quoc Airport, Long Thanh Airport cargo terminal, and Gia Binh Airport. The revenue structure is tilted towards the domestic market with a 70% share, while the remaining 30% comes from international projects.