FRT_HOLD_TP 162,00_Update business performances_BSC Company Update

VALUATION

We recommend HOLD the stock code FRT at 162,100 VND/share, upside 4% compared to the price on March 29, 2022 with DCF method with WACC = 6.3%.

• The main growth driver comes from the Pharmaceutical segment, which is expected to continue to be profitable thanks to (1) Accelerating store growth while maintaining breakeven point; (2) The market is fragmented and the market share is expanding thanks to the expectation that (2.1) the demand for healthcare will be more focused after the epidemic and (2.2) the rapid growth of the middle class in the long term;
• Electronics segment continues to record double-digit growth in 2022, (1) Phone segment (Apple) grows thanks to businesses continuing to capture market share from portable goods, (2) Laptop: transformation trend The number of businesses and the trend of premiumization help improve the average price of products.

• The electronics and pharmaceutical sectors face long-term growth challenges due to the high base level of 2021-2022;
• Fierce competition in the pharmaceutical industry.

• Revenue and PAT in Q4/2021 reached VND 8,477 billion (+115% YoY) and VND 335 billion (+328 times YoY). For the whole year of 2021, revenue and PAT after minority interests reached VND 22,500 billion (+53% YoY) and VND 444 billion (18 times YoY).
• FRT plans to revenue and PBT in 2022 at VND 27,000 billion (+20%YoY) and VND 720 billion (+30%YoY) respectively.
• The company plans to pay dividends in 2021, equal to (1) money at the rate of 5% and (2) shares at the rate of 2:1;
• In 2022, FRT plans to pay cash dividend of 10% MG and Issue ESOP in 2022 up to 2%/number of outstanding shares at the time of issuance