FPT_BUY_TP 70,300VND_Upside 29.7%_Maintaining the growth_BSC Company Update

Valuation
We continue to recommend BUY for FPT stock with a new target price of VND 70,300/share (down 6.6% compared to the latest target price) based on PE / FCFF method at the proportion of 40%/60% (PE fw = 13) due to (1) business results in 2019 are lower than our expectation (revenue and PBT are respectively lower 1.9% and 4.1%) (2) lower the 2020 business forecast (revenue and PBT are forecast to grow by 19.9% and 20.0%).
2020 Business plan
In 2020, FPT plans revenue and PBT are at VND 32,450 billion (+ 17% YoY) and VND 5,510 billion (+ 18% YoY) respectively.
2020 BSC Business forecast
BSC forecasts that FPT's 2020 net revenue and profit PBT will be VND 33,255 billion (+ 19.9% YoY) and VND 5,599 billion (+ 20.0% YoY). EPS FW 2020 is 5,157 VND/share (+22.2% YoY) (deducted from bonus and welfare fund)
Investment thesis
1. New trends (Digital transformation) and large export market support company growth. Vietnam continues to have the advantage thanks to cheap labor and competitive bidding prices.
2. Business growth rate is expected to remain positive in the next 2-3 years with CAGR = 18%/year.
3. Expectation to increase added value product through new technology development and M&A opportunities
Catalyst                       
•    SCIC divests from FPT 
Investment risks
• Fierce competition in Telecommunications and Digital Content
• Capital intensive in telecommunications infrastructure
• Competition in recruiting employees