- We raise our target price (TP) for FRT by 8% to VND178,800/share and maintain our BUY rating.
- Our higher TP is driven by the positive impacts of rolling our TP horizon forward to end-2026, while maintaining our 2026-29F aggregate NPAT-MI forecast.
- We are positive about FRT’s long-term outlook with a projected NPAT-MI CAGR of 34% in 2025-30F. This is primarily driven by robust growth of the healthcare business/Long Chau (LC) (33% NPAT-MI CAGR), in addition to a sustained profit recovery of the ICT business/FPT Shop following its expected turnaround in 2025F.
- For 2026F, we project FRT’s NPAT-MI to grow 52% YoY, mainly driven by LC’s 42% NPAT-MI YoY growth, supported by SSSG, store expansion, and margin expansion (from a better product mix and higher operating efficiency). We also expect FPT Shop to maintain its profit-making momentum, with NPAT-MI surging 171% in 2026F from a low 2025F base, supported by modest sales growth and margin improvement (from underperforming store closures).
- FRT is trading at a 2026F P/E of 22.0x, while our TP implies a 2026F P/E of 27.1x – still below its 5-year average forward P/E of 28.2x. We view this as attractive given robust long-term prospects with our projected 34% NPAT-MI CAGR in 2025-30F.
- Upside potential/downside risks: Stronger/weaker-than-expected store openings and profitability for LC; stronger/weaker-than-expected profitability recovery of FPT Shop.
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