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Coteccons Construction chairman says CTD stock undervalued

By Le Hoang

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HCMC – The current CTD share price does not accurately reflect the company’s true value, said Bolat Duisenov, chairman of Coteccons Construction JSC.

Speaking at the annual general meeting of shareholders on October 17, Duisenov said that the stock, which trades at between VND50,000 and VND60,000 per share, is calculated using traditional metrics that overlook the company’s long-term goals and potential.

During the meeting, shareholders questioned the company’s 2025 targets of achieving US$1 billion in revenue and a US$3 billion valuation. Duisenov responded by saying the goals are attainable but will require more time. He emphasized the company’s focus on value creation and serving the market, noting sector growth is expected at 40-45%.

Duisenov also mentioned Coteccons’ unsuccessful bid for the Long Thanh International Airport project. While acknowledging the disappointment, he stressed that the setback is one of many opportunities in the fast-growing Vietnamese economy that will continue to demand large infrastructure projects.

In addition to domestic growth, Coteccons is eyeing international markets. Duisenov unveiled the establishment of a new subsidiary, Coteccons Constructions Inc., which specializes in providing construction services overseas. He mentioned ongoing talks with existing clients who are expanding beyond Vietnam.

The company looks to obtain revenue of nearly VND17.8 trillion and profit of VND274 billion in the financial year 2024, which is 2.6 times and 5.2 times higher than the financial year 2023 plan.

As of June 30, 2023, the company had total assets of over VND21.3 trillion, up by VND2.4 trillion against the beginning of the year.

The meeting also touched on the change in the company’s financial calendar, with the 2023 fiscal year accounting for only the first six months. The company reported revenue of over VND6.7 trillion and after-tax profit of VND52 billion in this period, achieving 88% and 118% of their respective plans.

CTD extended its losses to the third straight session as it inched down 3.32% to VND49,500 per share today, October 18, with a matching volume of over 1.4 million shares.

The benchmark VN-Index declined 1.63%, or 18.25 points, to close at 1,103.4 points, with 465 stocks falling and only 53 gaining.

Trade volume soared to over one billion shares, a steep increase of 71% over the previous session, while trade value surged 62% to more than VND21.8 trillion. Block deals contributed nearly VND2.2 trillion to the overall value, with 107.7 million shares changing hands.

Securities stock VIX took the lead by liquidity with more than 48.8 million shares changing hands, up 3.8% to VND14,850 per share.

The HNX-Index of the Hanoi Stock Exchange fell 2.92 points, or 1.27%, versus the previous session, to 227.11 points, with 33 advancers and 161 decliners. Trade volume and value increased by 37% and 30% versus the previous session to 130.2 million units and VND2.6 trillion, respectively.

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