Viet Dragon Securities - Update on the IT industry: The macroeconomic headwinds should have marginal impact on the growth of the IT services segment of Vietnamese technology players

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Viet Dragon Securities

Tung Do

Update on the IT industry: The macroeconomic headwinds should have marginal impact on the growth of the IT services segment of Vietnamese technology players

· The growth prospects of the IT industry are still better than most other industries on HSX this year, with a growth rate that is insignificantly slower than in 2022. FPT, representing the IT industry, has set a target of 22% YoY growth for the Technology segment’s PBT and 18% YoY for consolidated PBT in 2023.

· We believe that the resilience in growth in 2023 could be attributable to the diversity of markets, industries of customers and the non-discretionary nature of IT investment, especially digital transformation (DX) services.

· We maintain a BUY recommendation for FPT (TP: 100,500 VND), and CMG (TP: 48,600 VND), of which current 2023F P/E stay at 13.0x and 14.9x respectively. These multiples are relatively attractive, considering the 3Y CAGR of NPAT, which are 19% for FPT and 30% for CMG and not significantly affected by temporary macroeconomic difficulties in 2023.

13/04/2023 6 EN

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Viet Dragon Securities

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.

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Analysts

Tung Do

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Update on the IT industry: The macroeconomic headwinds should have marginal impact on the growth of the IT services segment of Vietnamese technology players

AWAITING THE BREAKOUT

Vietnam chilled-fresh meat market – Significant long-term potential but difficult to realize in

The decline has not come to a halt

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