Coteccons' credit rating upgraded

FiinRatings upgrades Coteccons' long-term credit rating to BBB+

FiinRatings has just upgraded the long-term credit rating of Coteccons Joint Stock Company (code CTD - HoSE floor) from BBB to BBB+ with a rating outlook of "Stable".

The above result is particularly meaningful when the Group A rating is almost exclusively for energy and banking enterprises and no construction company has been ranked in this group. Coteccons is also the only construction company to achieve a BBB+ credit rating, the highest level in Group B.

In particular, when compared with organizations in the banking sector, Coteccons' credit rating is equal to or higher than that of 15 credit institutions.

According to FiinRatings: “Coteccons has demonstrated its ability to maintain its leading position in the industry despite the difficulties of the high-risk construction industry and the recent challenging macroeconomic conditions. This is reflected in the strong and sustainable growth in revenue and remaining new contract value, along with continuous improvement in profit margins, operating efficiency indicators and quality of receivables”.

Regarding business results, in the 2023-2024 fiscal year (from July 1, 2023 to June 30, 2024), Coteccons recorded revenue of VND 21,045 billion, an increase of 30.8% over the same period and achieved 103% of the revenue plan of VND 20,500 billion; and profit after tax recorded VND 310 billion, an increase of 358% over the same period and exceeding nearly 8% of the profit plan of VND 288 billion.

In addition, on October 19, Coteccons will hold the 2024 Annual General Meeting of Shareholders. Regarding the business plan for the 2024-2025 fiscal year (from July 1, 2024 to June 30, 2025), Coteccons plans to achieve an expected revenue of VND 25,000 billion, an increase of 18.8% compared to the previous fiscal year, and an expected after-tax profit of VND 430 billion, an increase of 38.7% compared to the previous fiscal year.

Coteccons said that in the new fiscal year, the Company expects to maintain growth in civil construction, strongly develop industrial construction and build a foundation for infrastructure construction; participate in international markets and new business lines, contributing greatly to growth in both revenue and profit; and implement plans to improve current profit margins.

In addition, Coteccons will also continue to restructure the organization and improve organizational capacity to build a foundation for sustainable business development, in short, need the right people for the right job; become an Industry Leader, build a good brand in Vietnam and globally; and focus on sustainable development strategy.

Source: https://baodautu.vn/fiinratings-nang-bac-xep-hang-tin-nhiem-dai-han-cua-coteccons-len-muc-bbb-d227689.html