Construction firm Coteccons prepares for revenue and profit to fall

Friday, Jul 19, 2019 10:58

CTD share closed Thursday down 1.33 per cent to end at VND111,000 per share. — Photo

The construction conglomerate Coteccons Construction Joint Stock Company (Coteccons) expects its year revenue to fall 5 per cent year-on-year to VND27 trillion (US$1.2 billion) this year.

The company expects profit to decrease by 14 per cent against 2018, at VND1.3 trillion.

In the second quarter of 2019, Coteccons's net revenue hit VND5.8 trillion, down 30 per cent over the same period last year. Cost of goods sold accounted for nearly 97 per cent in net revenue so the company recorded only nearly VND184 billion in gross profit, down 67 per cent compared to 2018.

In the period, revenue from financial activities reached nearly VND72 billion, with a major part from bank deposits.

After deducting expenses, post-tax profit in Q2 only touched VND124 billion, down by 71 per cent year-on-year. This is the lowest quarterly profit that Coteccons has recorded since the first quarter of 2015.

In the first six months of 2019, net revenue of Coteccons was estimated at VND10 trillion, down by 20 per cent year-on-year. Post-tax profit stood at VND312.6 billion, down by more than half compared to that recorded in the first half of 2018.

As of the end of June this year, Coteccons's total assets totalled more than VND15.5 trillion, down VND1.2 trillion compared to the beginning of the year, mainly due to a reduction of short-term receivables.

Total liabilities reached nearly VND7.6 trillion, down by VND1.3 trillion compared to the beginning of the year. Equity touched VND8 billion.

Recently, KIM Viet Nam Growth Equity Fund has purchased 260,000 shares of Coteccons, thereby raising the ownership of the Korean fund group in Coteccons from 7.68 per cent to 8.02 per cent. VOF Investment Limited Fund, managed by Vinapital, has also bought an additional 50,000 shares to increase its holding to 7 per cent.

Coteccons shares closed Thursday down 1.33 per cent to end at VND111,000 each. — VNS

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