Coteccons (HOSE: CTD) | 3Q26 Earnings First Take, BUY (No change)

Strong Earnings Recovery And Record Backlog Support FY27 Growth, But Cash Conversion Remains Key

3Q26 (1Q FY27) results: CTD reported revenue of VND 11,269bn (+51.2% YoY, +7.6% QoQ), supported by accelerated construction activity and project execution. Gross profit reached VND 562bn, with GPM improving to 5.0% from 4.5% in the previous quarter. NPAT-MI increased 3.6% YoY to VND 305bn, supported by VND 184bn in deposit interest income. Excluding the prior-year one-off gain, underlying NPAT-MI rose 112.1% YoY, indicating a stronger operational recovery than headline earnings suggest.

FY27 Earnings Delivery: Strong Start, with Margin Improvement Supporting Upside. CTD's 1Q FY27 revenue and NPAT fulfilled 26.8% and 29.0% of management's FY27 targets of VND 42tn and VND 1,050bn, respectively. Against SBBS forecasts, revenue and NPAT-MI reached 26.1% and 38.5%, suggesting potential earnings upside if current margins are sustained. Management targets ROE of 12% in FY27, up from 8.4% on a TTM basis. We see FY27 earnings delivery as well supported, with margin sustainability and working capital efficiency.