X-Stock | CTD VND106,500 +21%: Reinforcing Its Position, Accelerating Profit Growth

PRELIMINARY ASSESSMENT OF BUSINESS RESULTS

Compared with our previous report:

• Backlog expanded strongly, in line with BSC’s forecast. As of end-2Q2026, backlog reached VND62.5tn, up 21% compared with end-1Q2026, supported by VND18.0tn of newly awarded contracts. Key clients remained major developers such as Vingroup, Masterise, and others.
• Gross margin improvement was also in line with BSC’s view. We consider the 3.7% gross margin level to be positive, as it has surpassed the previous margin base of around 3.1%–3.5%. Based on our discussion with CTD, as well as BSC’s earlier view, gross margin is expected to improve gradually year by year, supported by a more favorable industry trend.

VALUATION VIEW

BSC maintains its BUY recommendation on CTD, with an end-2026 target price equivalent to 2Q FY2027 of VND106,500/share, implying 21% upside versus the reference price on 25 February 2025. Our target P/B remains at 1.0x.BSC maintains its previous investment thesis: the construction sector is recovering, and CTD, as the largest listed construction contractor, is well positioned to benefit from this industry upcycle. Further details are available in our previous report. In this report, BSC mainly updates its earnings forecast and target price.