Title FPT_ADD_TP VND 76,700_Upside 15.2%_Value Chain Transformation_BSC Company Update
Report Type Phân tích công ty
Source BSC
Industry Technology
Bussiness FPT
Detail Date : 13/07/2021
Total pages : 14
Language : English
File Type : .PDF
FileSize : 650 Kb
Download: 1283
Download
Vote (You must be logged in to vote)
Short Content

 Valuation  

We issue ADD recommendation on FPT stocks with a target price of VND86,000 in 2021 (+ 15.2% upside potential from its closing price on Mar 11th 2021), equivalent to 35.2% higher than the target price of 2020 due to the adjustment of new target P/E= 18; after re-evaluating (i) Company’s competitive positioning (ii) Growth potential in the following years (iii) The P/E of businesses in the region will increase from 17 to 24 due to low interest rate.
 
Business plan for 2021 
FPT sets 2021’s revenue and profit before tax target of VND34,730 billion (+16% YoY) and 6,210 billion (+18% YoY), respectively.
 
Forecast of business performance in 2021
We forecast that FPT’s net revenue and NPAT in 2021 will reach VND36,140 billion (+21.2% YoY) and VND5,323 billion (+14.6% YoY) respectively, equivalent to 2021F EPS of VND5,049 /share and a forward P/E of 15.4.
 
Catalyst 
An industry leader is facing opportunities for Digital transformation
Positive business prospects in 2021
 
Investment risks
FPT’s recovery speed is adversely affected by the Covid-19’s movement disorders
Challenges of attracting labors in present scenario of IT job market.
 
Financial results & Business update
In 2020, FPT will achieve revenue and net profit after tax of VND29,830 billion (7.6% YoY) and VND4,422 billion (+13.1% YoY) respectively, equivalent to 94% of net revenue and 99% profit, compared to BSC’s latest forecast. 
BSC is optimistic about FPT’s business outlook in 2021 thanks to (i) Business segments recovering from low base (ii) Digital transformation projects still have room for growth.