X-Stock | FPT VND124,400 +19%: Rebirth

INVESTMENT THESIS

• BSC expects FPT to continue maintaining growth momentum of around 20% per year in 2026, supported by: (1) the recovery of the IT segment and a return to high growth, driven by a rebound in newly signed contracts, which have maintained an uptrend for three consecutive quarters. The revenue/newly signed contract ratio has also returned to 1.15x. This was partly reflected in Q4/2025 results, when the IT segment returned to growth at +18% YoY — please refer to the next page for details; (2) the education segment returning to growth as FPT Hue begins operations; and (3) the telecommunications segment maintaining growth of around 10% per year, supported by higher revenue per user and new user acquisition for FPT Play.
• FPT is trading at a reasonable valuation for accumulation, with 2026 forward P/E at 16.9x, lower than: (1) its five-year average P/E of 20.0x during 2021–2025, a period when FPT recorded average annual growth of 20%, and the average P/E of regional technology peers at 25.0x; (2) FPT’s expected continued growth of 20% per year in 2026; and (3) our view that the long-term contracts signed by FPT will provide a solid foundation for growth in subsequent years.

Q4/2025 EARNINGS UPDATE

Q4/2025 results: Net revenue and NPAT-MI reached VND20,225bn (+15% YoY) and VND2,503bn (+19% YoY), respectively. Key highlights include:

• Net revenue was driven by the overseas IT segment, which grew 18% YoY. Japan revenue reached VND4,168bn (+22% YoY); APAC revenue reached VND2,479bn (+19% YoY), returning to growth after three consecutive quarters of decline; Europe revenue reached VND1,065bn (+56% YoY); and the US revenue reached VND2,076bn (-1% YoY).
• NPAT-MI increased 19% YoY, supported by: (1) a 43% YoY decline in financial expenses due to lower FX losses and lower provisions for investment devaluation; and (2) a 143% YoY increase in profit from associates and joint ventures, thanks to improved earnings at FRT and FPT Synex. These factors offset the decline in gross margin to 34.8%, down 1.3 ppts YoY, due to the recognition of royalty expenses and sponsorship discounts.

Overall, BSC identifies several positive factors that could help FPT maintain double-digit growth in 2026, including: (1) APAC revenue growing 19% YoY, marking a strong recovery after two quarters of YoY decline; and (2) newly signed contracts in Q4/2025 reaching VND11,273bn (+33% YoY).