FRT Flash Note- OUTPERFORM

The company reported growth of 26.4% YoY in net revenue and 60.7% YoY in EAT in 3Q2025, beating our estimate driven by Long Chau’s faster-than-expected expansion. We project the company’s EAT at VND902bn (+121% YoY) in 2025, 19% higher than the prior update, and move target price to YE2026 at VND163,000/share. Rating OUTPERFORM. 

Net revenue and EAT climbed by 26.4% YoY and 60.7% YoY in 3Q2025, bringing FRT’s 9M2025 figures to VND36,170bn (+26.2% YoY) and VND636bn (+132% YoY), respectively.

Long Chau continued to drive the company’s revenue and earnings upturns. We estimate Long Chau generated 412% YoY EAT growth to VND633bn on 38% YoY revenue growth to VND24,804bn in 9M2025, primarily fueled by robust network expansion – 2,520 stores in operation (+451 pharmacies and vaccination centers YTD, exceeding its full-year plan) – and the absence of stock payment to the parent company in 3Q2024. The average revenue per store sustained around VND1.2bn per month.

The FPT Shop chain witnessed some improvements, with 11.2% YoY net revenue growth and EAT of VND48bn in 3Q (versus loss in 1H2025 and up by 21% from its core profit in the same period last year), bringing 9M EAT to VND3bn.

Widened gross margin and better operational efficiency. Gross margin broadened to 19.7% in 9M2025 (9M2025: 19.2%), with Long Chau’s gains offsetting FPTShop’s compression. Enhanced operational efficiency in FPTShop enabled the overall SG&A-to-net revenue ratio to reduce to 17.3%, from 17.5% in 9M2024.

We project that the company may deliver VND49,168bn (+22.6% YoY) in net revenue and VND902bn (+121% YoY) in EAT in 2025, 19% higher than the prior EAT projection. The respective growth is projected at 16.1% and 24.4% YoY in 2026. Combining the DCF and PER methods, our target price for FRT by YE2026 is VND163,000/share.