FRT — 2025 AGM — Key Takeaways

We attended FRT’s AGM on Apr 25^th, 2025.

Key Highlights

• 2024E results update. FRT disclosed consolidated sales of VND 40.1tn (+26% YoY), driven by a +59% YoY growth of Long Chau’s sales, reaching VND 25.3tn while sales of FPT Shop were VND 15.1tn (+7% YoY). The company also posted pre-tax profits of VND 527bn, with FPT Shop contributing VND 169bn in PBT. This is a positive recovering from the consolidated pre-tax losses of VND 294bn in 2023, which was impacted by the VND 475bn full-year loss FPT Shop).
• 2025E guidance. FRT targets consolidated sales of VND 48.1tn (+20% YoY) and pre-tax profit guidance of VND 900bn (+71% YoY). The key contributor remains healthcare/pharmacy retail (i.e., Long Chau). Specifically:
• Long Chau: Sales guidance of VND 32.3tn (+28% YoY) with+350 new pharmacies and +80 vaccination hubs are set to open in 2025E.
• FPT Shop: Sales guidance of VND 16tn (+6% YoY), driven by ongoing product diversification and a strong focus on expanding its consumer electronics segment, targeted to achieve 80% YoY growth in 2025E.
• Consumer electronics accounted for 8% of FPT Shop’s total sales in 2024 and we estimate this proportion to reach 13% by the end of 2025E. The company will also continue its restructuring strategy in 2025E, with a focus on increasing online sales, which offer lower operating costs.
• MNVO (Mobile Virtual Network Operator): FPT Shop reported that it had 400,000 subscribers in 2024 and targets +10% YoY growth in 2025E.

1Q25 consolidated revenues were VND 11.7tn (+29% YoY) and pre-tax profits were VND 273bn (+3x YoY). Details —

• Long Chau’s 1Q25 revenue was VND 8.0tn (+9% QoQ/+45% YoY), contributing 68% of total sales. Management says the pharmacy chain’s SSSG is now 10%-15% YoY, while that of the vaccination chain is 30% YoY.
• FPT Shop posted soft sales (-13% QoQ / 3% YoY) of VND 3.7tn. But sales per store improved by +21% YoY to VND 2.0bn, so the modest 1Q25 sales result was largely attributable to the YoY closure of 115 underperforming outlets to reach 628 outlets by the end of 1Q25.

So far, FRT has fulfilled 24% its full-year sales guidance and 30% of its pre-tax profit guidance for 2025E. Meanwhile, FRT has fulfilled 22% of our sales forecast and 23% our earnings forecast for 2025E.

Our View

Positive on the strategic investment. Creador’s investment in a 13% stake in Long Chau through a mix of primary and secondary shares should help accelerate the chain’s expansion into new sectors such as medical services, diagnostics, homecare, and nutrition/fitness over the next five years.

We reiterate BUY on FRT with target price of VND 197,200 per share, implying +21% upside. We remain confident on the long-term growth prospects of Long Chau’s comprehensive healthcare system and the sustained improvement in operational efficiencies at FPT Shop.

Please access the link for details: FRT – Express note – 2025 AGM