Result Update Report: FRT - Long Chau takes center stage as the key profit contributor in FY2023
We believe that the recovery of the FPT Shop chain remains uncertain, as it is contingent upon the pace of economic revival. This factor represents the most significant risk for the stock in the immediate future. Conversely, Long Chau has exhibited notable improvements in profitability, thereby mitigating the recent decline in the stock value.
While we anticipate that the performance for 2023 may yield predominantly negative results, it aligns with the short-term trends commonly observed within the retail industry. Furthermore, the strong rebound in FY2024 bottom line is foreseen for FRT. Consequently, if the Long Chau chain maintains its current growth trajectory over the forthcoming quarters and the demand for ICT consumption gradually rebounds, we believe that investors can cautiously accumulate shares in anticipation of a recovery in 2024.
Applying the SOTP valuation method, our analysis yields a target price of VND60,500 per share. This figure corresponds to an expected return of -9%, leading us to recommend a REDUCE position, commencing from June 21st, 2023.
FPT Digital Retail Joint Stock Company is a Vietnam-based company engaged in the retail distribution of Information Technology (IT) and mobile products. The Company is an operator of two retail chains, including FPT Shop and F.Studio By FPT. It has 500 retail stores in 63 provinces across Vietnam. FPT Shop offers mobile handsets and other personal electronic products, such as tablets, laptops and computer accessories, among others. F.Studio By FPT is an authorized reseller store of Apple Inc. which distributes products under the trademark of Apple. The Company also offers pre-sales and post-sales customer services and a provision of telecom service agents. Its headquarter is based in Ho Chi Minh.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.