FPT released preliminary 9M 2022 results with revenue of VND31tn (USD1.3bn; +24% YoY) and NPAT-MI of VND3.9tn (USD161mn; +30% YoY). These results fulfilled 71% and 73% of our respective full-year forecasts and broadly aligned with our expectation for FPT to achieve strong earnings growth that is backed by its core businesses: IT Services, Telecom Services and Education. As we see that FPT’s revenue historical growth patterns usually accelerate at the end of the year, we see no material risk to our current forecast, pending a fuller review. 

Software Outsourcing (SO): Revenue +29% YoY, PBT +28% YoY. Global SO’s PBT margin was 16.4% in 9M 2022, increasing by 6 bps vs 15.8% in H1 2022, which we attribute to a strong contribution from digital transformation (DX) services. In 9M 2022, DX revenue jumped 34% YoY and contributed 39% to global SO revenue, per our estimate. Furthermore, newly signed offshore SO contract value surged 43% YoY in 9M 2022 to VND16.8tn (USD686mn), maintaining the robust YoY growth momentum.