FPT Flash Note- BUY

FPT recently announced that from Jan 1^st, 2026, the company will no longer consolidate FPT Telecom JSC (HOSE: FOX) into FPT’s consolidated financial statements as a subsidiary. Instead, FOX will be recorded as an affiliate, with FPT recognizing its interest based on its 45.66% ownership. Besides FPT, Ministry of Public Security, whose ownership was transferred from the State Capital Investment Corp. in 2025, is another major shareholder of FOX holding 50.17% stake. According to the Official Letter No. 1906 dated Mar 18^th, 2026 issued by the Department of Planning and Finance under the Ministry of Public Security, after completion the transfer, the new owner will fully exercise rights and responsibilities of a parent company at FOX, including the consolidation of its financial statements.

We project this change will likely to narrow FPT’s balance sheet, EBT and EAT because of the absence of FOX’s full contribution; however, there could be no major change in terms of net profit after minority (NPATMI) as FPT’s NPATMI before 2026 excluded minority interest at FOX.

We maintain our like-for-like net revenue at VND57,675bn (-17.7% YoY; +14% YoY on a like-for-like basis), EBT at VND11,677bn (-10.5% YoY; +15.5% YoY on a like-for-like basis) and NPATMI at VND10,696bn (+14.1% YoY) for FPT in 2026. The projections are based on the assumption that FOX’s role as an affiliate will sustain in the coming time, although the possibilities of more changes are not denied. FPT also released 2026 business plans with net revenue of VND58,580bn (+15.8% YoY on a like-for-like basis) and EBT of VND11,629bn (+15% YoY on a like-for-like basis). In which, the technology division is set to grow by 18.4% YoY in revenue and 24.9% YoY in EBT and the respective targets for the education, investments and others division are -3.3% and 1.3% YoY. Maintain our target price at VND118,000/share by YE2026. BUY.