Investment Recommendation

FPT_BUY_TP 63,580VND_Upside 25.4%_Fire proves gold_BSC Company Update

Date

14/10/2020
Language

Tiếng Việt
Number of Downloads

427

Detailed report

Valuation

We maintain our BUY recommendation with the target price of VND 61,200 (+25.4% compared to the closing price on October 13rd 2020) based on two approaches FCFE and PE. The latest target price is 22.5% higher than previous target price due to expectation of positive recovery in FY 2021.

Business Forecast

BSC forecasts that revenue and profit of FY 2020 reach VND 31,841bn (+14.9% YoY) and VND 4,465bn (+14.1% YoY). EPS FW 2020 = 4,190 VND. PE FW 2020 = 11.7.

BSC forecasts that revenue and profit of FY 2021 reach VND 38,193bn (+19.9% YoY) and VND 5,569bn (+24.7% YoY). EPS FW 2021 = 5,282 VND. PE FW 202. = 9.3 lần.

Investment themes

Despite the negative impact of Covid – 19, FPT delivered an outstanding business results.

Positive growth rate is expected in FY 2021

Risk

Complicated and uncertain businessc condition due to corona virus

Company Update

Corona virus slowed down growth rate in the first 8 month of FY 2020. Revenue and profit before tax respectively rach VND 18,321bn (+7.6% YoY) and VND 3,343bn (+11.7% YoY), accomplishing 56.4% and 60.7% of guidance.

Digital Transformation trend continue to be the key growth driver for FPT thanks to (i) An inevitable trend comes from the need to apply technology in business activities and (ii) Corona virus changes customers’ behavior in investing technology: increasing demand for cost optimization, operation optimization,…