• FPT hosted its AGM on April 10, 2024, in Hanoi. The meeting covered a wide range of topics, including the company’s 2024 business guidance and outlook.
• For 2024, FPT guides for both revenue and PBT YoY growth of 18%. We note that FPT has a track record of achieving or surpassing its profit guidance. In 2023, FPT's actual PBT completed 102% of its 2023G. 
• Preliminary Q1 2024 results: Revenue and PBT advanced more than 20% YoY each, which are broadly in line with our expectations. Although segmental results were not disclosed, we attribute the robust Q1 2024 growth to FPT’s three core segments of Global IT, Education, and Telecom Services. As a result, we currently see upside potentials to our forecasts, pending a more extensive review.
• FY2023 cash and share dividends: FPT will pay the second tranche of the FY2023 dividend in Q2 2024. Including this payment, the total FY2023 cash dividend will amount to VND2,000/share (yield of 1.8%). FPT also plans to issue a share dividend at a ratio of 20:3 (i.e., 20 existing shares get three additional shares) in Q3 2024. 
• FY2024 cash dividend: FPT will pay the FY2024 cash dividend of VND2,000/share based on the new share count after the above stock dividend issuance (or VND2,300/share based on the current share count), which implies a 2.0% yield based on the latest closing share price. 
• ESOP scheme: FPT will issue no more than 0.5%/0.227% of total current outstanding shares for its employees / top management at VND10,000/share. The lock-up period is three years for shares issued to FPT's employees and ten years for shares issued to FPT’s top management.

Global IT maintains robust momentum in 2024. FPT’s management estimates that the global IT business will grow ~25% YoY in Q1 2024, which continues to be led by a ~40% YoY surge in its Japan market and sustainable growth in its APAC market. The company is confident of delivering 25-30% YoY growth in new contract value and expects to continue its M&A strategy in 2024. Management also eyes 50% YoY growth in revenue in FPT’s subsidiary auto software service firm FPT Automotive in 2024 and achieve revenue of USD1bn by 2030. Regarding its semiconductor business, the firm may enter into joint ventures with global tech companies such as Foxconn to explore expansion opportunities.

Telecom growth in 2025 is to be bolstered by new developments in the data center business. Management expects to launch a new data center in Ho Chi Minh City with a capacity of 50-100MW by end-2024 / early-2025. This data center owns high computing power to serve a new line of services in Artificial Intelligence (AI) and Big Data. In addition, FPT is planning a new data center in Hanoi with a vision to serve rising data demand from both domestic and regional markets. The firm also seeks to invest in submarine cable infrastructure to meet its clients’ requirements for high data capacity, as well as expected revenue growth of 25-30% per annum for its submarine cable business. 

Education thrives on continuous expansion and private education demand. Per management, FPT will (1) expand buildings and facilities of FPT University across its five campuses and (2) continue to open new campuses for K-12 and vocational training in tier-2 and tier-3 cities / provinces, specifically new K-12 campuses in Thanh Hoa, Hue, and Hau Giang in 2024, to capture solid tech and private education demand in Vietnam.  

FPT’s 2024 revenue and PBT targets by segment

Source: FPT, Vietcap

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