FPT Retail (HOSE: FRT) | Initiation Report, BUY - FW2026 Upside +16.2%

Company Information

FPT Digital Retail JSC (FRT) was established in 2012 as a spin-off from FPT Corporation. Currently FRT is one of Vietnam’s leading retailers in the technology and pharmaceutical sectors. As of the end of 2025, FRT operated 623 FPT Shop stores (-11 stores), 2,417 Long Chau stores (+474 stores), and 223 vaccination centers (+97 VC).

Financial Performance

In 2025, FRT’s total revenue reached VND 51,083 bn (+27.3% YoY), fulfilling 106.0% of its full-year target. Revenue from FPT Shop reached VND 16,809bn, up 11.1% YoY, broadly in line with overall industry growth. Meanwhile, the pharmaceutical segment recorded a strong 36.3% YoY increase to VND 34,501bn, driven by the expansion of 374 new pharmacy stores and 97 vaccination centers. NPAT-MI reached VND 794bn, nearly tripling YoY, primarily supported by VND 713 bn from the pharmaceutical segment, while FPT Shop returned to a marginal profit of VND 81 bn, compared with a loss of VND 58 bn in 2024.

As of the end of 2025, FRT’s total assets stood at VND 23,714 bn, up 49.8% YTD. In addition, total liabilities increased by 35.5% YTD to VND 18,575bn, primarily driven by a 87.2% YTD rise in payables to VND 5,995bn, and interest-bearing liabilities recorded a significant increase of 14.2% YTD to VND 10,502bn.

Investment Rationales

We like FRT for its growth in pharmaceutical segment:

o   Favorable pharmaceutical market dynamics.

o   FRT’s market leadership and scale advantages.

o  FRT’s profitability is expected to continue expanding during 2026–2028.

Valuation and Recommendation

We apply a blended valuation approach, assigning equal weights 50%/50% to both DCF and P/E methodologies, which give us a 2026 Target Price of VND 173,200 per share. Accordingly, we initiate coverage with a BUY recommendation, implying an upside potential of 16.2%.