Vietnam constructrion heavyweight Coteccons sees H2/2024 net profit soar 47%

Coteccons Construction JSC, Vietnam’s construction giant, reported VND199 billion (7.93 million) in net profit in the second half of 2024, up 47% year-on-year.

This figure represents 46% of its target for the fiscal year spanning July 1, 2024 to December 12, 2025, according to Coteccons’ earnings report.

During the first half of FY2025, or H2/2024, the firm, listed on the Ho Chi Minh Stock Exchange as CTD, booked VND11.64 trillion ($464.3 million) in net revenue, up 19% year-on-year and meeting 46% of the goal.

It secured VND16.8 trillion ($670 million) worth of new contracts during the period, raising its total backlog value to nearly VND35 trillion ($1.4 billion) since the second half of FY2024.

As of end-2024, Coteccons’ total assets reached VND27.08 trillion ($1.08 billion), up 18% from early last year.

Its inventories surged nearly 60% to VND4.99 trillion ($199.3 million), mostly real estate projects for sale such as the Marina Tower apartment complex in the southern province of Binh Duong and the Thanh Do smart city project in the Mekong Delta city of Can Tho.

As of the end of 2024, CTD reported liabilities of VND18.39 trillion ($733.4 million), up 29 percent from the beginning of last year.

CTD shares closed last Friday, the last trading day before the country's nine-day Lunar New Year holiday, at VND73,300 ($2.92) apiece.

Local construction companies are expected to benefit from the anticipated recovery of the real estate market and increased public investment initiatives after a long period of challenges, say industry insiders.

Public investment, in particular, will continue to serve as a key driver of economic growth next year, said Tran Hoang Son, director of VPBank Securities’ market strategy division.

If public investment is heavily directed toward infrastructure development aimed at attracting foreign investment into industrial parks and economic zones, construction firms and industrial developers such as CII, Deo Ca, and Vinaconex will have significant opportunities to secure new projects, Son remarked.

In addition, with an economic growth target of 8% in 2025, the government is committed to resolving obstacles hindering the recovery and development of various markets, including gold, bonds, and real estate. As a result, construction companies are likely to see an increase in project activity in the near future.