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The company announced 131% YoY growth in EBT to VND1,219bn in 2025, meeting 109% of our projection, and targets 27% YoY growth in 2026. We revise 2026 EBT projection up by 16% to VND1,626bn (+33.4% YoY) as a result of a revision for Long Chau. Our target price for the stock is VND171,700/share by YE2026, translating to a total return of 14%. Rating OUTPERFORM.
Net revenue and EBT rose by 27.4% YoY and 131% YoY, to VND51,083bn and VND1,219bn in 2025, meeting 104%/109% of our projections and 106%/135% of the company’s plans, respectively.
The gigantic EBT growth was fueled by a strengthened gross margin with Long Chau’s gains offsetting FPTShop’s compression, while the SG&A-to-net revenue ratio slightly improved. Additionally, financial expense fell by 31% YoY (thanks to increased interest income) giving the earnings an extra push.
Long Chau drove the overall results, reporting three-fold EBT to VND1,137bn (~93% of FRT’s EBT) in our estimate, bolstered by both increased sales per store and robust scale expansion. The chain added 571 new pharmacies and vaccination centers, beating our assumption – to 2,640 stores in total at YE2025 – and the expansion is expected to sustain in 2026.
The FPTShop chain experienced some enhancements, returning to profitability in 2H2025 after facing losses in 1H. 2025 EBT stood at VND82bn (versus a negative figure in 2024 if a significant dividend in financial income is excluded), alongside revenue of VND16,809bn (+11.1% YoY).
For 2026, we project that the company may generate VND61,513bn of net revenue (+20.4% YoY) and VND1,626bn of EBT (+33.4% YoY) and EAT of VND1,301bn (+32.2% YoY), with Long Chau still playing as the driving force. The numbers are up by 16% from our prior projections, stemming from an upward revision for Long Chau considering the higher-than-expected number of new stores. The focus on prescription drugs and a diversified drug portfolio with accessible origins remain Long Chau’s advantages to lure consumers, amid the government’s intensified control on counterfeit products increasingly propelling consumers to choose branded retailers.
