FPT released its H1 2023 results with revenue of VND24.2tn (USD1.0bn; +22% YoY) and NPAT-MI of VND3.0tn (USD127.2mn; +21% YoY), completing 46% and 48% of our respective full-year forecasts and broadly aligning with our expectation for FPT to experience resilient earnings growth in 2023.

Global IT Services: Revenue +30% YoY & PBT +35% YoY. PBT expanded 50 bps YoY from 15.8% in H1 2022 to 16.3% in H1 2023, which was partly supported by 40% YoY higher digital transformation (DX) revenue (accounting for 44% of total global IT revenue). In 6M 2023, FPT strengthened its presence in South Korea, China, Japan and Indonesia as it focused on more resilient markets to offset weaker growth in the US (+15% YoY in H1 2023 vs +48% YoY in H1 2022). Japan and APAC continued to lead the way as their revenue increased 39% YoY and 43% YoY, respectively. In addition, new global IT contract value increased 29% YoY in H1 2023 to VND15.0tn (USD635mn).

Domestic IT: Revenue +9% YoY & PBT -24% YoY. The decline in domestic IT profit decelerated from -80% YoY in Q1 2023, implying demand and cost improvements. FPT worked with 30 cities/provinces nationwide to implement digital transformation in H1 2023.

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