FPT_BUY_TP 107,900_Upside 28.0_Update business results for the first 6 months _BSC_Vietnam company update

Valuation

▪ We maintain our BUY recommendation for FPT stock with a target price of VND 107,900 with upside potential of 28% from the closing level on September 7, 2022..

Forecast business results in 2022

▪ Compared to the previous report, BSC maintains its forecast for 2022: FPT's 2022 revenue and profit after tax is forecast to reach VND 44,068 Billion (+24% YoY) and VND 6,771 Billion (+27% YoY). EPS 2022 reaches 4,800 VND/share, P/E equivalent to fw reaches 18.0

Risks

▪ Weak customer demand as major economic outlook faces challenges

▪ Risks of competition to attract human resources Technology

Business Updates

▪ Accumulated in the first 7 months of 2022, FPT recorded positive business results: Revenue reached 23,219 billion (+22% YoY), the group's profit after tax reached 3,613 billion (+28% YoY). Business results are in line with BSC's forecast in the previous report.

▪ The structure of business activities has not changed much with the main contribution continuing to come from the two segments Technology and Telecommunications with the proportion of pre-tax profit at 45% and 40% respectively.

▪ Foreign information technology: revenue +29% YoY, profit before tax +28% YoY. Domestic information technology: revenue +9% YoY, profit before tax +7% YoY. Telecommunications services: revenue +15% YoY and pre-tax profit +20% YoY thanks to profit margin increasing to 19.2% from 18.3% due to payTV's profit growth.