FPT Flash Note- BUY

FPT has just held its AGM with key notes as follows:

• 2026 net revenue was set at VND58,580bn (+15.8% on a like-for-like basis) and EBT at VND11,629bn (+15% on a like-for-like basis), given changes in recognizing FPT Telecom (FOX).
• The Technology division remains the company’s primary growth engine, targeting revenue and EBT growth of 18.4% YoY and 24.4% YoY, respectively. FPT will continue to prioritize investments in strategic technologies such as AI, Quantum AI, Cybersecurity, Unmanned Aerial Vehicles (UAV), Railway Technology, and Data. The global IT services segment is centered on three pillars: i) “AI-First” positioning AI as a core capability not only embedded across solution design, product development but also deployed internally to enhance productivity and competitive advantages, ii) “Top-tier engagement” focusing on large-scale projects, high-value contracts and strategic clients and iii) “Synergy” strengthening both external collaboration with leading global technology firms and internal coordination to deliver comprehensive and large-scale solutions.
• For the domestic IT services segment, FPT aims to expand the Made-by-FPT product ecosystem and deepen its engagement in digital transformation projects in the public sector.
• FPT still plays the key role in driving FOX’s business operations despite recording it as an With the Ministry of Public Security (MoPS) becoming FOX’s new owner, FOX could be assigned the national large infrastructure projects under the MoPS’s management.
• FPT maintains new recruitment, with a focus on high expertise and skillful candidates, while the existing workforce continues to be upgraded in combination with leveraging AI to boost productivity.
• FPT believes the addition of Mr. Toshikazu Nambu to its Board of Directors will likely heighten its credibility and facilitate market access in Japan. With his extensive experience, including his current roles as Vice Chairman of Sumitomo Corp. and member of the Government of Japan’s International Data Governance Advisory Committee (Digital Agency), etc., he is well positioned to support FPT’s bidding success and accelerate international partnerships.
• 2025 cash dividend was set at 20% (i.e. VND2,000/share), with 10% paid in 2025 while the rest could be paid in 2Q2026. In addition, the company proposed a 10% stock split, tentatively scheduled to be completed no later than 3Q2026.

We maintain our net revenue projection at VND58,093bn (-17.1% YoY; +14% on a like-for-like basis), EBT at VND11,637bn (-10.8% YoY; +15.1% on a like-for-like basis) and NPATMI at VND10,663bn (+13.7% 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.