Coteccons plans to raise nearly VND7.4 trillion from Lego projects in 2024

According to Donghai

Investing.com – VNDirect’s latest report shows that Coteccons Construction Joint Stock Company’s (HM:) construction revenue has recovered since 2022, rising 60.3% year-on-year to 14,517 billion copper. Although still far away from the 2017-2019 period, the 30.9% revenue growth is enough to help the company regain the lead nine months later in 2023. Meanwhile, other businesses saw double-digit declines.

Coteccons has gradually established its position in the industrial construction market by winning bids for projects from leading domestic companies, such as Hoa Phat Steel Production Base (HM:) – Dung Quat Phase 1 (contract value approximately VND 1.35 trillion), VinFast Automobile, etc. Haiphong factory (contract value approximately VND7 trillion).

The Lego toy factory project (located in Binh Duong Province, covering an area of ​​44 hectares, with an estimated total contract value of 10 trillion VND), information shows that the project has started construction in the fourth quarter of 2023, and is expected to be completed and operational in 2024. It is the LEGO Group’s first carbon-neutral machine and will be powered by solar energy.

Implementing a fast-track construction approach, Coteccons has completed 30% of the plant and will start recording revenue from the project in the first quarter of fiscal year 2023/2024 (July 1, 2023 to June 30, 2024). Factory construction revenue reached VND1,654 billion, accounting for 40% of the company’s total revenue.

Cumulatively in the first nine months of 2023, factory construction revenue reached VND3,003 billion, accounting for nearly 28% of CTD’s total revenue.

VNDirect expects the company’s revenue from this project to reach VND7,371 billion in fiscal year 2023/2024 and VND4,917 billion in fiscal year 2024/2025.

CTD is also involved in the construction of an Apple (NASDAQ: ) product assembly plant for Foxconn in Guangzhou Industrial Park (Beijiang), with a total investment of US$300 million. It is estimated that CTD’s current contract value in this project is approximately US$45 million.

VNDirect estimates that Coteccons’s industrial construction contract value will reach a compound growth rate of 9.4% during 2023-2026.