FLASH NEWS 07/04/2023 – FPT: AGM note

FPT Corporation (HSX: FPT) held the annual general meeting on April 6th, 2023. Here are some key points:

• FPT targets VND52,289bn (+18.8% YoY) of net revenue and VND9,055bn (+18,2% YoY) of EBT in 2023, underpinned by the existing divisions including technology (20.9% revenue growth and 23.8% EBT growth), telecom (13.6%; 14.6%) and education, investments & others (25.1%; 12.2%), with the global IT services, telecom services, and education being the key drivers.
• The global IT services segment is expected to maintain high double-digit growth and reach $1bn of revenue this year. FPT will keep promoting digital transformation services and expects revenue from these services to grow by 35-40% YoY in 2023. 
• Telecom services’ growth may continue to be driven by developing more products/services rather than subscription growth because of the market saturation, expanding data centers, developing more contents for PayTV, investing in submarine cables and other infrastructure, etc.
• For the education segment, FPT targets to keep expanding this segment vertically and horizontally, broaden campuses in Hanoi, HCMC and Da Nang and launch new high schools. The segment may expand to overseas markets if there are good opportunities.
• 1Q23 preliminary business results recorded ~18% YoY growth in revenue and a similar or a bit higher growth in EBT. The global IT services segment jumped by 25%+ YoY. Digital transformation was estimated to rise by approximately 30% YoY.
• FPT maintains its focus on M&A strategy to enhance its presence in overseas markets as well as capabilities in providing products and services. 
• Investments in human resources will continue in tandem with increasing productivity.
• 2022 dividend: 

o Cash: VND2,000 per share (50%of which was already paid in 2022; the rest may be paid in 2Q23).

o Stock: 15% (3 new shares for every 20 old shares).