- FRT released its preliminary Q2 2021 results with net revenue of VND4.4tn (USD190mn; +36% YoY) and PBT of VND37bn (USD1.6mn) vs a pre-tax loss of VND21bn (USD900,000) in Q2 2020. We note that Q2 2020’s loss was attributed to nationwide social distancing measures in April when — at its peak — FRT had to close ~30% of its total mobile stores.

- For H1 2021, net revenue reached VND9tn (USD392mn; +24% YoY) while PBT amounted to VND76bn (USD3.3mn; +189% YoY), which completed 51% and 48% of our respective full-year forecasts and were broadly in line with our expectations. However, due to the current COVID-19 disruptions affecting FRT’s mobile store operations, we see potential downside risk to our current forecasts, pending a fuller review. As of today, all of FRT’s mobile stores in HCMC (which account for ~15% of FRT’s total mobile stores) are temporarily closed as the city stepped up its social distancing measures.

- FPT Shop’s (mobile chain) revenue advanced 13% YoY in H1 2021, which was mainly driven by (1) strong sales of the iPhone 12 series after they were launched in late 2020 (iPhones contributed about a third to FRT’s mobile sales in 2020) and (2) a 34% YoY jump in laptop sales to VND1.3tn (USD58mn) H1 2021, which was underpinned by FRT’s conversion of 68 standard mobile stores to the ‘laptop center’ format that carries a larger number of laptop SKUs.

- Long Chau’s (pharmacy chain) revenue surged 183% YoY in H1 2021 on the back of a rapid store expansion. Per management, Long Chau secured 150 locations for new Long Chau stores in H1 2021 — 68 of which have been opened.

- As of the end of H1 2021, FRT had 625 mobile stores (vs 595 at YE2020) and 268 Long Chau stores (vs 200 at YE2020). Long Chau’s store opening pace aligns with our current forecast of 150 new stores in 2021 with any potential deviation leaning towards the upside, in our view, given the abovementioned lock-in of new store location.