X-Stock | FRT VND181,200 +14.7%: 2026 AGM Materials Update

INVESTMENT THESIS

• FRT recorded a 2021–2025 PBT CAGR of 22% per year, and 2026 earnings are expected to mark another record-high PBT with growth of 27% YoY, supported by: (1) Long Chau, with PBT expected to increase by 25% YoY, as the chain effectively captures the industry shift from the general trade channel to the modern trade channel through efficient execution of a smaller-store format and optimized product portfolio; and (2) FPT Shop, with PBT margin expected to improve from 0.5% to 0.7%, supported by industry trends and an expected product mix shift toward consumer electronics.
• The positive share price performance of +7.4% since our latest report has partly reflected BSC’s earnings expectations. Therefore, we issue a WATCH recommendation on FRT.

2026 FORECAST UPDATE

BSC maintains its expectation that FRT will continue to follow a consistent operating strategy, similar to our previous report, and adjusts our forecasts as follows: (1) we raise the 2025 earnings base — details on the next slide; and (2) we revise our 2026 forecasts for FRT, with net revenue down 2% and PBT up 6% versus our previous report, to reflect a more cautious view on the ICT market and the dietary supplement segment, while Long Chau pharmacy and vaccination center store openings are expected to focus more on efficiency, FRT is expected to grow more positively than the industry and is projected to complete 101% of its revenue plan and 100% of its PBT plan. Accordingly, BSC forecasts 2026 net revenue and PBT at VND60,103bn (+17% YoY) and VND1,556bn (+27.6% YoY), respectively, equivalent to 2026F EPS of VND5,883.

Estimated store opening progress in 2026F: Long Chau is expected to add 280 pharmacies to reach 2,476 pharmacies and 30 vaccination centers to reach 263 centers. FPT Shop is expected to maintain 623 stores, with more than 65% of stores selling consumer electronics.

2026 AGM MATERIALS UPDATE  (Slide 2)

2026 business plan: FRT continues to target growth, with revenue of VND59,500bn (+16% YoY) and PBT of VND1,550bn (+27% YoY).

2025 profit distribution plan from undistributed after-tax profit on the audited separate financial statements as of December 31, 2025: (1) allocation of more than VND2.4bn to the reward and welfare fund, equivalent to approximately 2.3% of undistributed after-tax profit; and (2) stock dividend payment at a 5% ratio, equivalent to approximately 81.8% of undistributed after-tax profit.