X-Stock FPT 90,600 +27% Business Results in Line with Expectations

INVESTMENT THESIS

Compared with our previous recommendation, BSC maintains a BUY recommendation on FPT with a target price of VND 90,600/share, implying 27% upside from the closing price on August 12, 2026, based on the following views:

1. Compared with our previous report, FPT’s 1H2026 business performance and new contract value growth of 32.3% YoY indicate that earnings momentum is likely to continue improving in 2H2026. For 2027, BSC believes the outlook will depend mainly on contracts that FPT secures in late Q3 2026 and Q4 2026, as these contracts are typically recognized over the following 7–9 months. We will provide further updates in our upcoming reports.

2. FPT’s share price has increased 16% from its recent trough; however, the stock is still trading at a 2026F P/E of 12x, equivalent to around 2 standard deviations below its 5-year average of 19–20x, while business performance has begun to show clearer signs of recovery. In addition, foreign net selling pressure over the past three months has declined significantly compared with the beginning of the year and has started to reverse into net buying since early August 2026. This indicates an improvement in capital flows into FPT as the stock’s valuation has fallen to a relatively low level compared with its historical range.

BUSINESS RESULTS UPDATE

Q2 2026 results: Net revenue reached VND 13,789bn (-17% YoY, or +16% YoY excluding FOX revenue in the same period last year), while NPAT-MI reached VND 2,568bn (+14% YoY).

1. Revenue growth YoY, excluding FOX, was mainly driven by the overseas IT services segment, which recorded revenue of VND 9,868bn (+16% YoY). By market, Japan reached VND 4,751bn (+25% YoY) and Europe reached VND 1,186bn (+36% YoY), offsetting weaker growth in APAC at VND 1,749bn (-2% YoY) and the U.S. at VND 2,181bn (+8% YoY). In contrast, the Education, Investment and Other segment recorded revenue of VND 1,493bn (+0.13% YoY) amid weaker student enrollment.

2. NPAT-MI increased 14% YoY, supported by: (1) improved margins in the domestic IT segment; and (2) recovering business performance at associated companies, including FRT, FPT Synnex and FPT Telecom.

BSC VIEW

Overall, FPT’s business results were broadly in line with BSC’s forecasts and our view in the latest report. In 1H2026, FPT recorded net revenue of VND 26,269bn (+12.6% YoY) and NPAT-MI of VND 5,047bn (+14% YoY), completing 46% and 47% of our full-year forecasts, respectively.