FPT announced preliminary 2022 results with revenue of VND44tn (USD1.9bn; +23% YoY) and NPAT-MI of VND5.3tn (USD224mn; +22% YoY), which completed 104% and 95% of our respective full-year forecasts. These results broadly align with our expectation for FPT to experience prosperous earnings growth in 2022 that is backed by its core businesses: IT Services, Telecom Services and Education.

Software Outsourcing (SO): Revenue +23% YoY and PBT +22% YoY. Robust revenue growth was led by 50% YoY and 36% YoY increases in revenue from the US and APAC markets, respectively. FPT also experienced a strong recovery in Japan with revenue growth of 16% YoY due to pent-up demand for IT services following COVID-19 in 2021. In 2022, digital transformation (DX) revenue jumped 33% YoY and accounted for 39% of total SO revenue. In addition, new global SO contract value increased 39% YoY in 2022 to VND21.6tn (USD915mn) and completed 92% of management’s plan to achieve USD1bn from new contracts by year end 2022.

Domestic IT: Revenue +6% YoY and PBT +15% YoY. Domestic IT experienced 6% YoY revenue growth and 15% YoY PBT growth in 2022 thanks to strong growth momentum from made-by-FPT products, whose revenue increased 54% YoY. On the other hand, domestic IT’s 2022 profit trailed our expectation mainly due to lower demand for IT spending from corporations and banks as well as the slow disbursement of IT budgets by local authorities.

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