HCM CITY — Construction giant Coteccons expects to post strong growth for the financial year ending in June, with revenues projected to exceed VNĐ30 trillion (US$1.13 billion), up 30 per cent from the previous year and higher than its original target.

Speaking at the company's Shareholders’ Day on June 15, chairman Bolat Duisenov said the net profit is expected to rise by 50 per cent to VNĐ680 billion ($25.9 million), also significantly exceeding the target.

He highlighted Coteccons' healthy financial position, noting that operating cash flow remains positive and profit margins are set to improve to around 4 per cent from 3.4 per cent.

Coteccons has maintained average annual revenue growth rate of around 25 per cent since the Covid pandemic, driven by enhanced risk management, tighter financial controls, and a gradual strengthening of its competitive advantages.

Duisenov said the company's next phase of growth would rest on three strategic pillars: urbanisation, industrialisation, and international expansion.

As Việt Nam continues to urbanise, demand for infrastructure such as airports, hospitals, schools, and public facilities is expected to increase, and Coteccons has invested heavily in construction capabilities to capture opportunities in this segment.

Industrial construction is the second major growth driver as Việt Nam strengthens its position as a global manufacturing hub, with demand for factories, logistics facilities, data centres, and high-tech infrastructure continuing to rise.

The company plans to expand its presence in these sectors, and is expected to announce additional projects in the coming months.

Duisenov said the third pillar, dubbed “Going Global”, focuses on overseas expansion.

While international projects only contribute a small portion of revenues now, management expects revenues from global operations in FY2026-27 to rise by three to four times from the current year, he revealed.

Construction demand is expected to continue outpacing supply through 2027, allowing the company to maintain a healthy project pipeline and replenish its order book, but it is shifting its focus from rapid expansion to higher-quality, more sustainable growth, he said.

The company has reported a record backlog in excess of VNĐ65 trillion (around US$2.5 billion), providing strong visibility for future growth.

Deputy CEO Trần Ngọc Hải said Coteccons is increasingly pursuing projects that not only generate revenues but also enhance its technical expertise and competitive position.

He cited landmark developments such as the Lego factory, Sun Group’s nearly VNĐ13 trillion Opera House project and Gia Bình Airport as examples of complex projects that strengthen the company’s capabilities.

Addressing concerns over the recent slump in the company’s share price, he cited a recent VinaCapital report showing that more than 70 per cent of listed stocks are currently trading at price-to-earnings ratios of below 10 times, a valuation level typically associated with past market downturns and one that does not fully reflect the companies' growth prospects.

He added that Coteccons remains focused on fundamentals rather than stock market fluctuations.

The company will continue prioritising operational excellence, prudent financial management, customer relationships and the successful execution of its VNĐ65 trillion backlog. — VNS