FPT Corporation (HOSE: FPT) | Q2 2025 Update, BUY – 1Y Upside +23.5%

H1 Results Softened by APAC and Domestic Slowdown; Gears Up for H2 Rebound

FPT sustained solid growth momentum through H1 2025 thanks to (i) steady demand for digital-transformation services, (ii) further expansion of its global businesses with a robust overseas contract pipeline, and (iii) continuing growth in telecom as domestic broadband penetration deepens. The transfer of the State’s stake in FPT Telecom (FOX) to the Ministry of Public Security on July 16 was a policy event, but it could unlock large-scale government IT projects.

Looking into H2 2025, we expect domestic IT spending as well as wider-APAC IT spending to resume after the tariff-related pause in Q2 2025. We expect healthier momentum in FPT’s Domestic IT and Telecom segments in the H2 2025 as public spending will be accelerated after the merges of provinces completed. Beyond 2025, demand for digital solutions should strengthen further as private-sector investment gathers pace.

We revise our 12M Target Price for FPT to VND 131,000/share, from our previous target of VND 133,100/share. We maintain a BUY rating on FPT with an upside of 23.5% from the closing price of VND 106,100/share as of July 30, 2025.