Actg 240 group project

Coteccons Construction Joint Stock Company (CTD) Table of contents 1 Company Profile 3 1.1 Key fact 3 1.2 Key financial performance 3 1.3 Key executives 4 1.4 Ownership and major holders 5 1.5 Company history 6 1.6 Stock market snapshot 7 2 Company Business Overview 8 2.1 Business description (CTD) 8 2.2 Major products andor services 8 2.3 Markets and sales activities 9 2.4 Locations and subsidiaries 9 3 Company Financial 9 3.1 Financial Statements 9 3.1.1 Income statemet 9 3.1.2 Balance sheet 11 3.2 Financial Ratios 12 3.2.1 Liquidity Measurement Ratios 12 3.2.2 Profitability Indicator Ratios 12 3.2.3 Debt Ratios 13 3.2.4 Turnover Ratios 13 3.2.5 Financial ratios charts 13 4 Company Competitors 15 4.1 Direct Competitors 15 4.2 Comparisons of company and direct competitors of financial 15 5 Company SWOT 17 6 Conclusion 18 7 References 19 8 Appendices 21 8.1 Financial ratio formulas 21 8.2 List of table 21 8.3 List of Figures 22

ACTG 240 – FINAL GROUP PROJECT

GROUP 7 Submission Date: 18/8/2022

Coteccons Construction Joint Stock Company (CTD)

LECTURER: MS VO NGOC THAO NGUYEN

Table of contents

1 Company Profile 3

1.1 Key fact 3

1.2 Keyfinancial performance 3

1.3 Key executives 4

1.4 Ownership and major holders 5

1.5 Company history 6

1.6 Stock market snapshot 7

2 Company Business Overview 8

2.1 Business description (CTD) 8

2.2 Major products and/or services 8

2.3 Markets and sales activities 9

2.4 Locations and subsidiaries 9

3 Company Financial 9

3.1 Financial Statements 9

3.1.1 Income statemet 9

3.1.2 Balance sheet 11

3.2 Financial Ratios 12

3.2.1 Liquidity Measurement Ratios 12

3.2.2 Profitability Indicator Ratios 12

3.2.3 Debt Ratios 13

3.2.4 Turnover Ratios 13

3.2.5 Financial ratios charts 13

4 Company Competitors 15

4.1 Direct competitors 15

4.2 Comparisons of company and direct competitors of financial 15

5 Company SWOT 17

6 Conclusion 18

7 References 19

8 Appendices 21

8.1 Financial ratio formulas 21

8.2 List of table 21

1 Company Profile

1.1 Key fact

Table 1 Key facts of Coteccons Company

1.2 Key financial performance

Table 3 Historical data

Table 4 Key executives

3 Herwig Guido H.Van Hove Director

12 Doan Phan Trung Kien Member of Supervisory Board

13 Zhaidarzhan Zatayev Member of Supervisory Board

1.4 Ownership and major holders

Table 5 List of major holders

(Stockbiz, n.d.)

Figure 1 Owner structure

Success Investment and Business

One Member Company Limited

Foreign Ownership 49.00%

Other Ownership 51.00%

1.5 Company history

2004: Converting operation model into Cotec Joint Stock Company under Decision No

1242/QĐ-BXD dated 30 July 2004 signed by the Minister of Construction

2006: Participating in important RMIT University, The Manor, Grand View, etc projects 2007: Dragon Capital, Indochina Capital, and Tainan Spinning all donated substantial

sums of money in the form of investments adding 120 billion VND to the charter capital

2008: Conquering the high-end real estate market with typical projects of Ho Tram

Sanctuary, River Garden, The Center Point, etc

On 10 May 2009: Starting Coteccons office building 100% owned by Coteccons

On January 20, 2010: Coteccons stock (CTD code) was listed and began trading on the

Ho Chi Minh City Stock Exchange (HOSE)

On 8 September 2011: Contracting with the general contractor for the Grand Ho Tram

Casino Complex, the biggest and most cutting-edge casino in the area, which was financed by

Asia Coast Development Ltd (ACDL)

2012: Signing a strategic cooperation agreement with Kustocem Pte Ltd (Singapore) to

issue 10,430,000 shares (equivalent to USD25 million)

2013: Raising the stake of Coteccons in Unicons to 51.24% and officially operating under

the corporation model

2014: The Design & Build (D&B) paradigm started well With significant investors like

Masteri Thao Dien, Regina, and others, numerous D&B contracts have been negotiated

2015: Dealing with a lot of important D&B contracts Indicating a record-high increase in

both revenue and profit

2016: Construction on the Landmark 81 project, which will be among the world's highest

structures

August 2017: Starting the Hoi An Casino project with a total value of nearly VND7,000

billion

2019: Completing construction on The Landmark 81 project Coteccons is also

recognized as one of the top 50 most outstanding and significant businesses in Vietnam

2020: Recognized as one of Vietnam's top contractors in 2020 The amount of charter

capital was VND 792.55 billion

1.6 Stock market snapshot

Figure 2 Stock market snapshot of Coteccons

(Trading view, n.d.) This graph shows the volatility of CTD stock price for five years from 2017 to 2022 and the stock price has experienced a gradual decrease until now

2 Company Business Overview

2.1 Business description (CTD)

- Full name: COTECCONS CONSTRUCTION JOINT STOCK COMPANY

- Abbreviation name: COTECCONS

- Company logo:

- Business code: 0303443233

- Charter Capital: 792.550.000.000 dongs

- Cotecoons is a constructed company established on 24th August 2004 from the equitization

process of a member company under Fico Corporation - one of the prestigious construction

companies in the Vietnam market

+ Vision: Cotecoons toward the goal of becoming a world-class construction corporation, with a focus on infrastructure projects, design-build projects, and general contractor projects and trying to reach out and grow in the 21st century of Vietnam

+ Mission: The value of our brand name is determined by our reputation and product

quality, and Coteccons pledges to meet our client's needs for high standards in terms of

technology and aesthetics in life The company also aims at a reasonable cost for the spending

level of Vietnamese

2.2 Major products and/or services

- Construction of civil and industrial works, transport works, irrigation works

- Design the total construction sites, civil and industrial works; design of heat supply, ventilation, air conditioning; design of electrical works, design construction of urban technical infrastructure

- Construction of water supply and drainage work, environmental treatment

- Business, brokerage

- Sell iron, steel, materials, machinery, equipment in construction etc

2.3 Markets and sales activities

- During the past time, Cotecoons hasn’t stopped growing For many years, Cotecoons’s revenue has always reached over 20,000 billion VND per year

- In a difficult time in the estate market like 2019, Cotecoons still achieved a quite high profit

although there were very few new projects implemented, many construction projects were

suspended or delayed because of Covid-19

- This is also a rare construction unit that has been in the top of businesses with a profit of over 1,000 billion VND for many years

2.4 Locations and subsidiaries

Table 6 Subsidiaries and locations

Unicons Construction Investment Co., Ltd Coteccons Office Tower, 236/6 Dien Bien

Phu, Ward 17, Binh Thanh District, Ho Chi Minh City

FCC Infrastructure Investment Joint Stock

Share of associates and joint ventures' result 4 -27 -30

Profit after tax for shareholders of parent

company

3.1.2 Balance sheet

Table 8 Balance sheet

BALANCE SHEET

Currency: Billion VND BALANCE SHEET

Period time: 2019-2021

3.2.1 Liquidity Measurement Ratios

Table 9 Liquidity Measurement Ratios

3.2.2 Profitability Indicator Ratios

Table 10 Profitability Indicator Ratios

Gross profit margin 4.42% 5.88% 3.03%

3.2.5 Financial ratios charts

 Liquidity Measurement Ratios

Figure 3

 Profitability Indicator Ratios

4 Company Competitors

4.1 Direct competitors

4.2 Comparisons of company and direct competitors of financial

Table 13 Comparisons of company and direct competitors of financial

Unit: % Coteccons Construction

Profitability Indicator Ratios

Hoa Binh Construction Group Join Stock

Company (HBC): Hoa Binh company is the leading

general contractor in Vietnam with the main field of

activity is the construction of large projects with the

task of civil construction; construction of industrial

works; infrastructure system

Phuc Hung Holdings Construction Joint Stock Company (PHC): among the top 2 best construction contractors in Vietnam Projects constructed by Phuc Hung company appear everywhere such as Hanoi, Quang Ninh, Ho Chi Minh City, Vung Tau and the location of foreign

construction schools with the Booyoung project in Cambodia

 Liquidity: Looking at the calculated values in the table of liquidity ratios from 2019 to

2021, Cotecoons Construction Company (CTD) held a higher capability in handling its current liabilities in comparison with the two competitors BMP quick and current ratios

in the three recent years 2019, 2020, and 2021 were about 2% higher than its two competitors Hoa Binh Construction Group (HBC) and Phuc Hung Holding Construction Company (PHC), and the cash ratios are much higher

 Profitability: As the table of profitability ratios showed, Coteccons Construction

Company had the gross profit margin slower than Hoa Binh Construction Group and also Phuc Hung Holding Construction in the three considered years 2018, 2020, and 2021

The net profit margin of CTD had a slight decrease from 3% in 2019 to 2.3% in 2020, and it continued to fall steadily to 0.27%, and HBC also profit decreased steadily while

PHC had dramatic growth in three years This phenomenon also happened in Return on equity and Return on assets of CTD from 2019 to 2021 The increase in Net profit margin PHC in the construction market may threaten the competitive positions of CTD and other firms in the next few years CTD is being defeated by its competitors gradually

 Debt ratios: The table indicated that the Debt ratios to assets and equity of Phuc Hung

Holding Construction was higher than Coteccons Construction Company and Hoa Binh Construction Group in the three considered years The debt ratios of CTD increased

slightly from 0% in 2019 to 0.1% in 2021, this means that the company increased its

capability to pay off long-term liabilities

 Turnover ratios: The table showed that CTD had the Inventory turnover ratios decreased from 14.78% in 2019 to 8.79% in 2020 and continued to fall in 2021 to 5.53% These

values were higher than its competitors HBC and PCH, so CTD had the higher capability

to decrease the numbers of inventories in the considered periods However, the capability

of CTD was not as high as the competitor HBC between 2019 and 2021 The Total asset turnover ratio of CTD from 1.44% in 2019 to 0.65% in 2021, while PHC could raise this ratio to 0.7% in 2021, this means that the CTD had a lower capability in turning its assets

in comparison with HBC and PHC

5 Company SWOT

 Strengths:

- The specific policy and planning system opens up many opportunities for the

construction industry, especially the infrastructure sector

- With the aim pf promoting economic growth, the government’s strong capital is

available only for key infrastructure projects

- Have a large, cheap, and highly skilled workforce

 Weaknesses:

- Construction capacity of enterprises uneven in the industry

- A large number of untrained workers create methodically

- Complicated administrative procedures create significant barriers for investors and also cause difficulties for construction and construction work submit

- Status of capital team, extending exam time work continues

 Opportunities:

- The real estate market gradually recovered

- The trend of urbanization is increasing day by day with the need to build houses, factories, urban infrastructure

- The trend of moving factories from neighboring countries to Vietnam, especially from China

- The signing of economic agreements will create a premise for FDI capital to

increase in Vietnam

 Threats:

- It depends a lot on the price of raw materials

- The entry of major construction contractors from abroad increases competitive

pressure for companies in the industry

- Concerns about supply reduction in the real estate market residential real estate and its negative impact on the sector civil construction sector

- The legal system is still limited and unclear as in the field of tax and business

registration

6 Conclusion

In the process of establishment and development over the past 17 years, Coteccons is the leading company in the construction industry in Vietnam Additionally, this business also has positively influenced the growth of the industry, market, and economy Around Coteccons is a large

community of customers, partners, suppliers, subcontractors, shareholders, investors, employees, and workers, both direct and indirect

In 2021, the Company was honoured by Vietnam Report as the holder of the 56th position in the Top 500 Largest Enterprises in Vietnam (VNR500) and the largest private construction

enterprise in Vietnam in 2020 Up to now, Coteccons has contributed to the implementation of over 400 projects across the country and has expanded their presence in Laos, Cambodia, and

Myanmar Although facing many difficulties because of the COVID-19 pandemic, by the end of

2021, the Company's total assets reached VND 13,925 billion Moreover, at the end of the

trading session on December 31, 2021, CTD’s stock price closed at VND 109,500/share, up by 43% compared to the starting price at the beginning of the year

VietstockFinance (n.d.) CTD: CTCP Xây dung Coteccons - Coteccons - Tai chính |

(n.d.) Coteccons – Building Futures

Hoa binh construction group joint stock company key stats and ratios – HOSE:HBC –

TradingView (n.d.) TradingView

HBC/financials-statistics-and-ratios/?fbclid=IwAR3C6Rer2TCRPLr3X5ciNY08TdNq74WhSzllRzbeo_6VetnorY49IhdSYYs

8 Appendices

8.1 Financial ratio formulas

Liquidity Measurement Ratios

Profitability Indicator Ratios

Gross Profit Margin =𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 – 𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑

8.2.2 Table 2 – Listing some information of Coteccons……….3

8.2.3 Table 3 Historical data……… ……4

8.2.3 Table 4 – Key execuives………4

8.2.5 Table 5 - List of major holders……… 5

8.2.6 Table 6 - Subsidiaries, joint ventures, associates………9

8.2.7 Table 7 - Income statement……… 9

8.2.8 Table 8 - Balance sheet……… 11

8.2.9 Table 9 - Liquidity Measurement Ratios……… 12

8.2.10 Table 10 - Profitability Indicator Ratios……… 12

8.2.11 Table 11 - Debt Ratios……….12

8.2.12 Table 12 - Turnover Ratios……… 13

8.2.13 Table 13 - Comparisons of company and direct competitors ……….15

8.3 List of Figures 8.3.1 Figure 1 - Ownership structure …….……… 5

8.3.2 Figure 2 - Stock market snapshot of CTD……… ………7

8.3.3 Figure 3 - Liquidity Measurement Ratios……… 13

8.3.4 Figure 4 - Profitability Indicator Ratios……… 13

8.3.5 Figure 5 - Debt Ratios……… ….14

8.3.6 Figure 6 - Turnover Ratio ……… 14