FPT released its H1 2024 results with revenue of VND29.3tn (USD1,155mn; +21% YoY) and NPAT-MI of VND3.7tn (USD145mn; +22% YoY), completing 45% of each of our respective full-year forecasts. As earnings results are tracking in line with our expectations, we see no material risk to our current projection, pending a fuller review.
Global IT Services: Revenue +30% YoY & PBT +25% YoY. In H1 2024, digital transformation (DX) revenue advanced 37% YoY and accounted for 46% of total global IT revenue. Sales continued to be led by the Japan and APAC markets with growth of 35% YoY and 32% YoY, respectively, in addition to a 54% YoY jump in revenue from the EU market. Revenue from the US grew 15% YoY in H1 2024. Additionally, FPT’s signed revenue accelerated +22% YoY (vs -3% YoY in Q1 2024) to VND18.7tn (USD735mn), displaying strong backlog orders and boding well for future growth.
Telecom Services: Revenue +7% YoY and PBT +15% YoY. In H1 2024, telecom services’ revenue growth was fostered by 9% YoY growth in broadband, together with a 5% YoY increase in non-broadband business. PBT margin expanded 1.4 ppts YoY to 21.3% in H1 2024 due to improvements in SG&A efficiencies in paid TV and internet lease-line, per FPT.
Education: Revenue +24% YoY. Robust growth continues in light of strong demand for tech and private education. FPT University will admit 1,000 students for the first batch of its semiconductor major, specializing in integrated circuit (IC) design. In addition, the company continues expanding its K-12 and vocational training as it has secured the investment certificate to build an educational complex in Hue Province.
FPT’s H1 2024 results
VND bn | H1 2023 | H1 2024 | YoY | H1 2024/ Vietcap’s 2024F | Vietcap’s comments |
Revenue | 24,166 | 29,338 | 21% | 45% |
|
Technology | 14,202 | 18,077 | 27% | 45% |
|
- Global IT | 11,227 | 14,573 | 30% | 46% | * Revenue from the Japan/APAC/EU/US markets grew 35%/32%/54%/15% YoY, respectively. * In H1 2024, revenue from DX services rose 37% YoY (46% of global IT revenue), while new signed revenue increased 22% YoY and large deals (valued at USD5mn+) doubled to 27. |
- Domestic IT | 2,975 | 3,504 | 18% | 41% |
|
Telecom | 7,682 | 8,244 | 7% | 47% |
|
- Telecom Services | 7,423 | 7,966 | 7% | 47% | * Fixed-broadband revenue grew 9% YoY while non-broadband revenue increased 5% YoY. |
- Online advertising | 259 | 278 | 7% | 37% |
|
Education | 2,754 | 3,425 | 24% | 42% | |
Investment & others | -473 | -408 | N.M. | 30% |
|
PBT | 4,339 | 5,198 | 20% | 46% |
|
Technology | 2,005 | 2,452 | 22% | 45% |
|
- Global IT | 1,834 | 2,294 | 25% | 47% | * Profit margin declined 60 bps YoY to 15.7% mainly due to the cost of goodwill amortization for acquisitions in 2023-early 2024, which is in line with our forecast. |
- Domestic IT | 171 | 157 | -8% | 28% |
|
Telecom | 1,514 | 1,759 | 16% | 51% |
|
- Telecom Services | 1,475 | 1,697 | 15% | 52% | * Profit margin expanded 1.4 ppts YoY to 21.3% in H1 2024 due to improvements in SG&A expense efficiencies in non-broadband businesses. |
- Online advertising | 39 | 62 | 58% | 34% | * Profit margin improvements due to recovery in business and marketing activities in H1 2024. |
Education, investment & others | 820 | 987 | 20% | 39% | * Mainly driven by profit from the education business. |
NPAT-MI | 3,003 | 3,672 | 22% | 45% |
|
Source: FPT, Vietcap
Powered by Froala Editor
