• We raise our target price (TP) for FRT by 4% to VND220,800 and reiterate our BUY rating. 
• Our higher TP is primarily driven by our (1) 28%-increase in our aggregate 2024F-28F EBIT for FPT Shop as we expect improved operational efficiency following its (1) product mix adjustment towards higher-GPM products and (2) closure of underperforming stores in 2024.
• We double our 2024F forecasted NPAT-MI to VND240bn (USD9mn) as we reduce our forecast for FPT Shop’s net loss by 64% to VND59bn (USD2mn). As a result, we increase our 2025/26F NPAT-MI forecasts by 20%/10%, respectively, and inch up 2027/28F NPAT-MI by 2% in each year.
• We maintain our projection for 2024F-29F sales CAGR of 20% at Long Chau (LC), reaching USD2.1bn in 2029F, with a corresponding NPAT-MI CAGR of 50% to USD90mn in 2029F. FRT’s projected 2027F P/E and EV/EBITDA multiples are attractive at 16x and 9x, respectively, vs the double-digit growth outlook of its healthcare business, based on our forecasts. 
• Potential upside/downside risks: Stronger/weaker-than-expected store rollouts and profitability for LC; stronger/weaker-than-expected recovery in ICT profitability.

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