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External broker reports(aggregated public sources)

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Equity Bottom-Up

<p>FPT Retail (FRT) is the second largest mobile phone retailer in Vietnam, after MWG. Its smaller size will allow FRT to expand, although the smartphone market is gradually becoming saturated. Additionally, we believe that F.Friends and Subsidy can make a difference and will partly help FRT maintain its growth for the next two years.<br>The Long Chau pharmacy chain is promising. However, in order to truly become the driving force of FRT, Long Chau needs to succeed on a large scale, not only in Ho Chi Minh City. This is a difficult task, especially since the current environment is not really ideal for the development of pharmacy chains<br>While the outlook for the mobile phone business does not seem too attractive, FRT’s stock price is now at a level that is within a realistic trading range. After a 25% drop from its peak, the stock is not too expensive. Using a “sum of the parts” valuation method, we estimate the combined value of FPT Shop and F.Studio at about VND 75,500/share, and the Long Chau drugstore chain at VND 8,500/share. Adding a cash dividend of VND 2,000, the potential gain is 17%, enough for an ACCUMULATE recommendation on the stock.</p>

FPT Retail (FRT) is the second largest mobile phone retailer in Vietnam, after MWG. Its smaller size will allow FRT to expand, although the smartphone market is gradually becoming saturated. Additionally, we believe that F.Friends and Subsidy can make a difference and will partly help FRT maintain its growth for the next two years. The Long Chau pharmacy chain is promising. However, in order to truly become the driving force of FRT, Long Chau needs to succeed on a large scale, not only in Ho Chi Minh City. This is a difficult task, especially since the current environment is not really ideal for the development of pharmacy chains While the outlook for the mobile phone business does not seem too attractive, FRT’s stock price is now at a level that is within a realistic trading range. After a 25% drop from its peak, the stock is not too expensive. Using a “sum of the parts” valuation method, we estimate the combined value of FPT Shop and F.Studio at about VND 75,500/share, and the Long Chau drugstore chain at VND 8,500/share. Adding a cash dividend of VND 2,000, the potential gain is 17%, enough for an ACCUMULATE recommendation on the stock.

FPT Corp

FRT - Aggressive Plan Needs to Be Proven