FRT Flash Note- OUTPERFORM

FRT held its 2026 AGM with key notes as follows:

• 2026 revenue was set at VND59,500bn (+16% YoY) and EBT at VND1,550bn (+27% YoY).
• Preliminary 1Q2026 net revenue was estimated to reach c.VND14,875bn, up by c.27% YoY, while EBT jumped by 70% YoY, to c.VND464bn, surpassing our projections notwithstanding partially expected.
• Long Chau (LC)’s action plans in 2026:
  • Expanding its network and fortifying its leading position: LC aims to open 450 pharmacies and vaccination centers in 2026, concurrently maintaining and reinforcing its position in prescription, next-generation, rare and specialized medicines. The chain targets to bring 30 types of new and rare medicines to Vietnam in 2026.
  • Pioneering in providing customers with innovations and maximizing their convenience and benefits to differentiate itself from the existing and potential competitors, thereby upholding its leading position.
  • Strengthening collaboration with reputable partners in the healthcare and pharmaceutical sectors to bring advanced products and treatment measures to Vietnam.
  • Boosting revenue per store and expanding services/products portfolio.
  • Reinforcing customer trust, enhancing the current expertise, and preparing expertise for new services.
• FPTShop’s action plans in 2026:
  • Diversifying products and services portfolio, spurring sales of consumer electronics and home appliances with installation services.
  • Optimizing the business model and online sales channels, improving operational efficiency and revenue per store.
  • Promoting sales of FPT SIM and digital services and gradually widening the digital services ecosystem.
• The company plans to add UAV products to its product portfolio, beginning as a pure retailer and potentially broadening to other services such as training, maintenance, etc. once ready. Still, execution may take time, as the market is niche and comprises various requirements.
• The company plans to implement stock dividend at a rate of 5% (shareholders owning 20 shares will get 01 new share) by the end of 3Q2026.

Comment: Given vibrant growth in 1Q2026, we revise 2026 EBT projection up by 5% to VND1,706bn (+39.9% YoY) and target price to VND175,300/share by YE2026, respectively. Rating OUTPERFORM.