During a dialogue with Coteccons (CTD) management this morning, a shareholder inquired about sales at the Emerald 68 project. Deputy General Director Nguyen Chi Thien reported that the project has achieved an 80-90% sales rate.

Starting in the last quarter of 2023, Coteccons embarked on its first real estate project with Emerald 68, a condominium complex in the Thuan An district (TP HCM) co-developed with Le Phong investor. The project, with a total investment of over 2,000 billion VND, falls within the mid-range segment. CTD's foray into real estate heated up the trend of real estate investment by numerous construction companies, following the lead of Hoa Binh Construction, Phuc Hung Holdings, and Fecon.

However, Mr. Bolat Duisenov, Chairman of the Board of Directors of CTD, emphasized, "Coteccons is not eager to delve into real estate and shoulder the inherent risks of this sector,".

Mr. Bolat Duisenov, Chairman of the Board of Directors of Coteccons, during the shareholder dialogue on the morning of 20/9. Screenshot

Mr. Bolat Duisenov, Chairman of the Board of Directors of Coteccons, during the shareholder dialogue on the morning of 20/9. Screenshot

He noted the current enthusiasm and positive figures surrounding Emerald 68. However, just 1-2 years ago, many shareholders questioned and doubted the feasibility of this venture due to the market downturn. This highlights the cyclical nature and inherent risks of real estate.

According to Mr. Duisenov, Emerald 68 and an upcoming project with BEHS Company in Long An will help CTD find a successful formula for partnering with strategic allies in real estate development. The company doesn't aim to compete directly with its clients, but rather seeks mutually beneficial partnerships that yield good profit margins with minimal risk.

For instance, with Emerald 68, they anticipate a return on investment of around 20% with manageable risks. Mr. Bolat added that beyond profit, the company's involvement also aims to enable their employees to own homes built by their own hands. Currently, Coteccons employees account for about 10% of buyers at Emerald 68. He stated this goal transcends profit.

In summary, CTD's leadership has adopted a "slow and steady" approach to this new field, participating only in projects with moderate profit margins and low risk. Mr. Bolat believes they are close to grasping this "successful formula." Consequently, Coteccons not only collaborates with residential real estate developers but can also participate in larger-scale projects involving data centers, green technology, and green energy.

While Coteccons' management claims Emerald 68 isn't profit-driven, analysts suggest this new business segment could add a positive dimension to their financial picture. According to Vietcombank Securities (VCBS), with 770 apartments and selling prices around 45-50 million VND per square meter, Emerald 68 is expected to generate around 2,285 billion VND in cash flow. With a 49% stake, CTD could record approximately 450 billion VND in financial profit between 2026 and 2027.

Coteccons' business performance has recovered well recently. According to the fiscal year 2025 Q4 financial report, the company's 12-month cumulative revenue reached nearly 24,867 billion VND, an 18% increase. Profit after tax reached 454 billion VND, a 47% year-on-year increase. This is Coteccons' highest profit since 2020, a period marked by the pandemic and economic recession. However, the gross profit margin reached 2.6%, a 0.8% decrease compared to the same period last year, due to increased material and labor costs.

As of the end of fiscal year 2025 (June 2025), the total backlog carried forward reached 35,353 billion VND. BIDV Securities (BSC) believes the backlog will grow significantly in the coming fiscal year due to the recovering real estate market and CTD's proven capabilities with major investors like Vinhomes and SunGroup. Additionally, the stabilized workforce following two years of restructuring will be an asset in the current labor-short market.

BSC reports that CTD's new contract figures remain strong. During this morning's dialogue, Coteccons' management stated that the backlog has reached 45,000-50,000 billion VND by the end of the first quarter of the new fiscal year.

Tat Dat