1. H1 2025 results: Revenue was VND32.7tn (USD1,282mn; +11% YoY; 46% of our full-year forecast) and NPAT-MI was VND4,409bn (USD173mn; +20% YoY; 49% of our full-year forecast). Revenue aligns with our forecasts, while NPAT-MI is slightly ahead of our expectations. We see potential slight upside to our 2025F forecasts, pending a more comprehensive review.
2. Q2 2025 results: Q2 2025 revenue growth decelerated to 9% YoY, mainly caused by the slowdown of the global IT business. Meanwhile, NPAT-MI increased 19% YoY, supported by the recognition of dividend income from TPB (a 6.7%-stake investment of FPT) and telecom’s improved PBT margin.
3. Segmental performance in H1 2025:
* Global IT: Revenue +14% YoY; PBT +17% YoY.
- Growth was mainly driven by digital transformation (DX) services, which grew 16% YoY and contributed 47% of total global IT revenue. By market, the Japanese market remained the top-performing market with 28% YoY revenue growth. Revenue in the US and EU markets grew by 8% and 25% YoY, respectively, while APAC revenue declined 3% YoY, reflecting cautious IT spending amid macroeconomic and geopolitical uncertainties.
- Signed revenue (the value of new global IT contracts) slowed further, rising just 5% YoY to VND19.9tn (USD781mn). The number of semi-mega deals (USD500,000 to under USD1mn) rose 10% YoY to 131, and large deals (USD10mn and above) jumped 50% YoY to 12. However, the number of mega deals (USD1mn to under USD10mn) declined 18% YoY to 105.
* Domestic IT: Revenue -1% YoY; PBT -2% YoY.
- Revenue from the Made-by-FPT product ecosystem rose 22% YoY, driven by demand from both private and public sectors.
* Telecom: Revenue +14% YoY; PBT +19% YoY.
- Telecom services delivered 13% YoY growth, in which broadband revenue grew 16% YoY and non-broadband revenue grew 11% YoY. We attribute broadband revenue growth to subscriber growth driven by market share gains in Tier-2 areas and increased ARPU supported by higher subscription fees and increased cross-selling.
- Online advertising posted 18% YoY revenue growth and 27% YoY PBT growth, supported by demand from new customers.
- Telecom’s PBT margin improved 1.1 ppts YoY to 22.4%, which we mainly attribute to improved broadband profitability and cost optimization initiatives.
* Education, investments & others: Revenue +6% YoY; PBT +25% YoY.
- Education revenue alone increased 3% YoY, reflecting lingering impacts from a more than 20% YoY decline in new enrollments in 2024.
- PBT growth was supported by contributions from associate companies and recognition of dividend income from TPB.
We currently have a BUY rating for FPT with a target price of VND120,600/share.
FPT’s Q2 & H1 2025 results
VND bn | H1 2025 | YoY | Q2 2025 | YoY | H1 2025/ Vietcap’s 2025F |
Revenue | 32,683 | 11% | 16,625 | 9% | 46% |
Technology | 20,128 | 11% | 10,359 | 8% | 44% |
- Global IT | 16,669 | 14% | 8,483 | 12% | 47% |
- Domestic IT | 3,459 | -1% | 1,876 | -8% | 36% |
Telecom | 9,357 | 14% | 4,775 | 13% | 48% |
- Telecom services | 9,030 | 13% | 4,565 | 12% | 48% |
- Online advertising | 327 | 18% | 210 | 39% | 46% |
Education, investments & others | 3,198 | 6% | 1,491 | 6% | 50% |
- Education | 3,537 | 3% | 1,703 | 3% | 48% |
- Investments & others | -339 | -17% | -212 | -12% | 36% |
PBT | 6,166 | 19% | 3,141 | 18% | 48% |
Technology | 2,834 | 16% | 1,418 | 9% | 44% |
- Global IT | 2,681 | 17% | 1,290 | 9% | 46% |
- Domestic IT | 154 | -2% | 130 | 12% | 27% |
Telecom | 2,096 | 19% | 1,129 | 21% | 51% |
- Telecom services | 2,017 | 19% | 1,074 | 20% | 51% |
- Online advertising | 79 | 27% | 56 | 33% | 56% |
Education, investments & others | 1,236 | 25% | 594 | 37% | 53% |
NPAT-MI | 4,409 | 20% | 2,235 | 19% | 49% |
Source: FPT, Vietcap
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