FPT Retail JSC – downgrade from Outperform to Hold (FRT : HSX – Retail)

FPT Retail JSCdowngrade from Outperform to Hold (FRT : HSX – Retail)

 

  • FY2018 results in line with expectations. Earnings were mainly driven by new store openings of mobile chain.

 

  • HSC’s FY2019 forecast calls for 14.4% growth in bottom line driven by mobile chain’s new store openings and SSSG. Long Chau pharmacy chain will be consolidated and make loss of VND (16) billion.

 

  • Medium-term growth prospects limited as the mobile market is saturated.

 

  • Expansion into retail pharmacy is key to long-term growth. But it is tough.

 

  • Downgrade to Hold. Fair value is VND 71,200.

 

  

 

 

HSC

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