FPT_BUY_Update business results for the first 6 months of 2021

Valuation  

§  We continue to maintain OUTPERFORM recommendation for FPT shares with a target price of VND 107,000 in mid-2022 with the potential to increase the price of 14% compared to the price on August 17, 2021 based on two valuation models, FCFE and P/E with a weighting of 60%/40%.

Forecast business results in 2021    

§  BSC forecasts FPT revenue and profit in 2021 to reach VND 36,140 billion (+21.2%YoY) and profit after tax of VND 5,323 billion(+20.4% YoY). EPS FW 2021 = VND 5,049. PE FW 2021 = 18.5x.

§  BSC dự báo doanh thu và lợi nhuận năm 2022 của FPT lần lượt ước đạt 42,086 tỷ đồng (+17% YoY) và lợi nhuận sau thuế đạt 6,324 tỷ đồng (+20% YoY). EPS FW 2022 = 6,103 đồng. PE FW 2021 = 15.4 lần.  BSC forecasts FPT revenue and profit in 2022 is at VND 42,086 billion (+17%YoY) and profit after tax at VND 6,324 billion (+20%YoY). EPS FW 2022 = VND 6,103. PE FW 2021 = 15.4x.

Investment thesis

§  Leading technology enterprises in industry face digital transformation opportunities[TN1] 

§  Growth rate expected to remain above 20% for the next 3 years

Risks                                

§  The complexity of epidemic affects the speed of recovery.

§  Competitive risks attract human resources expert in technology

Business Update

§  Accumulated in the first 7 months of 2021, FPT recorded business results with a growth rate in line with BSC estimation. Revenue and profit after tax reached 19.001 billion (+19% YoY) and 2.822 billion (+18% YoY) with positive growth in all industries.