Individual Clients
Corporate Clients
CTD Flash note – OUTPERFORM
11/02/2025 - 3:17:11 CHCOTECCONS CONSTRUCTION JSC (CTD VN)
CTD (Fiscal Year (FY): 01/07/2024 – 30/06/2025) achieved robust growth in the first two quarters of the new fiscal year, propelled by the resurgence in construction activities, especially the industrial construction segment, and enhanced cost management. The current financial performance surpassed our projections, achieving 70% of the annual forecast thanks to a higher-than-expected backlog. Change our rating from Buy to Outperform as stock price has increased by 16% since our initial report in 07/2024.
In 2H2024, CTD reported total revenue of VND11,645 bn (19% YoY). The primary contribution to this revenue came from construction activities which accounted for 98% of the total revenue. This growth was mainly driven by key projects, including The Infinity, Ecopark Sky Forest, the Suntory Pepsico plant, and the Thuy Van Road renovation project.
After deducting the cost of goods sold, CTD achieved a gross profit of VND407 bn, (+51% YoY). The gross profit margin improved by 0.7%, rising from 2.8% to 3.5%, largely due to the higher contribution from the industrial construction segment which has a higher gross profit margin. Moreover, CTD enhanced its operational efficiency via reducing the selling and administrative expenses to revenue ratio from 2.1% to 1.9% compared to the same period last year. Consequently, CTD recorded a NPATMI of VND199 bn (+47% YoY), achieving 47% of its annual target and 70% of ACBS’s forecast.
In 4Q2024, CTD successfully repaid VND432 bn in principal and approximately VND20.7 bn in interest on a three-year bond issued on January 14, 2022. Following this repayment, CTD no longer has no bond outstanding and the remaining financial obligations being short-term bank loans. Cash and cash equivalents maintained at a high level, exceeding VND2,478 bn (-13% YTD). The net debt-to-equity ratio improved significantly, dropping from 7% to 2% in 2H2024. CTD continues to be the construction industry leader with the lowest net debt ratios.
In 2H2024, CTD’s accounts receivable reached over VND14,211 bn (+14% YTD), accounting for more than 52% of total assets, primarily driven by short-term receivables from customers. CTD has made provisions of nearly VND1,424 bn for doubtful short-term receivables.
Quick comments: The 2H2024 business result of CTD exceeded our previous forecast. As a result, we will review our 2025 forecast and reassess the stock valuation in the next update report.
