Economics of money banking and financial markets topic stock market analysis of fpt

When it comes to shares of a company, business, or organization, most of us know that the share price increases or decreases depending on the stock exchange or when the economy develops.

VIETNAM NATIONAL UNIVERSITY, HANOI UNIVERSITY OF LANGUAGES AND INTERNATIONAL STUDIES

UOUUU

DAI HOC NGOAI NGU

ECONOMICS OF MONEY BANKING AND FINANCIAL

MARKETS TOPIC: STOCK MARKET ANALYSIS OF FPT

Lecturer : Mrs.Le Thuy Anh

Group 4 : Nguyen Thị Phuong Nam

Pham Thi Bich Lien Nguyen Thị Hong Hue

Hy Thị Phuong

Le Thanh Thu

HA NOI, 2022

TABLE OF CONTENT

CHAPTER 1 INTRODUCES ABOUT THE FPT COMPANY sssssssssessesssssssesssnseee 5 I1 Ầ 5

H Introduction to stock 1ssuance 1n ø€€raÌL - - + c 22211211211 121 1111115111111 1 111111121511 x56 5

1 The concept of1ssuInp shaf€s - c1 2022211211121 1511 12 1117110111011 211 1111112111112 1xx 5

PL vo noi co an 5

CHAPTER 2 KEY CONTENTS ABOUT FPT?S STOCK ISSUANCE 6

II A brlefoverview of EP T”s stock 1ssuance aCfIVIEI€S ác n n2 HH9 H1 ke 6

1 Equtty and shareholder information - ¿5c 2 222122 211231125111 1521 125111155111 81x es 6

2 Conditions and purpose of1ssuing shares of FPÏT 2 2212111221121 1 15115521122 1xe2 7 2.1 Conditions for allowing FPT to 1ssue shaFes 2 2c 222 2222222121122 xxe 7 2.2 Purpose of1ssuInp shares of FPÏ - c1 0121112112 1112111511111 1111111 12111211121 x kg 8

IV The stock performance of FPT in the period of2021-2022 - cc 22+ 222222 8

V OPERATION SITUATION OF FPT IN 2022 AND EFFECTIVE ASSESSMENT OF

hs) 32 0551072909217 10

3 Evaluating the efficiency of stock IsSUa'C€ - c2 12112111121 1111 111111111811 11 3.1 Evaluation of the business segment cece cccececeseeeeeseeneeeeesesstseentseeenens 11 3.2 Potential assessment of FPT stock eeeeeeeeeeeeeeeeeseeeeesneeecneeseesneeeees 13

TABLE OF FIGURE

Figure 1 FPT stock price chart in the last 6 months 0.0 eeceeeceeee testes tneeneeneeneeeeees 7 Figure 2 Recent FPT trading volume on HOSE cece eceeeeeeceeeteeeceeeene ee cee eneeneeeneeeeenees 9 Figure 3 The price movement of FPT shares in the HOSE trading session on October 5,

PP 9

Figure 4 Revenue-Profit of FPT 10

i8 si 0i 6.1080 1n 12

Figure 6 Business results In the 2nd quarter of2022 by business segment - - 13

Figure 7 Revenue by market 13

INTRODUCTION

In the period of industrialization, modernization as well as integration into the world

economy, almost everyone at home knows about the stock market They can easily learn, trade, and exchange stocks and securities at any time

When it comes to shares of a company, business, or organization, most of us know that the share price increases or decreases depending on the stock exchange or when the economy develops vote increases and vice versa

Vietnam Stock Market officially came into operation in 2000 with stock exchanges In

Ho Chi Minh City and Hanoi in 2005 After more than 20 years of operation and development, Vietnam's stock market has contributed a part to economic development

Currently, our country is building a socialist-oriented economy, and_ the encouragement of large enterprises to contribute to the development of the economy is getting stronger and stronger There have been many projects on the Vietnam stock exchange that have achieved many typical successes such as FPT Corporation as one of the leading units in the field of telecommunications technology development, contributing to economic development Stemming from that fact, only our evaluation and analysis of the stock market of FPT, our group chose the topic "Analysis of FPT's stock market in the market"

CHAPTER 1 INTRODUCES ABOUT THE FPT COMPANY

I About FPT

FPT Jomt Stock Company (The Corporation for Financing Promoting Technology) was established on September 13, 1988, tnitially as a state-owned company and later equitized under Decision No 178/QD-TTG, to become a joint stock company FPT Jot

Stock Company operates under the business registration certificate No 0103001041 issued

for the first time by the Hanoi Department of Planning and Investment on May 13, 2002, and the amended Business Registration Certificates

FPT has 4 main business segments (1) Technology Division including Software production, system integration, and IT services; (2) Telecommunications Division including Broadband Internet and Digital Content; (3) Distribution — Retail and (4) Education

Recently, the FPT brand continued to be honored in the Top 10 Most Valuable Brands

in Vietnam announced by Brand Finance (England) Accordingly, the FPT brand is valued

at 302 million USD In addition, FPT was also evaluated by Brand Finance as one of the three brands with the highest intangible value

II Introduction to stock issuance in general

1 The concept of issuing shares

Issuance of shares is the offering of shares of a company 1n the market

2 Classification of shares issuance

® Based on the release: initial release and an additional release

¢ Based on the nature of the issuance: direct issuance and indirect issuance

® Based on the issuance method: full offering and partial offering

¢ Based on the distribution range

= Internal (private) issue: Usually for investors, organizations intending

to hold long-term securities, issued to the company's CB-CNVC Specifically, in the case of FPT, the issuance of shares to a number of major shareholders such as SCIC Investment Company Limited (0.36%), Government of Singapore (3.56%), Deutsche Bank AG - London Branch (4.97) %) called internal release

= Public issue: An issue in which transferable securities are widely sold

to the public to a certain number of investors (usually high-quality companies such as FPT can carry out the public release form)

CHAPTER 2 KEY CONTENTS ABOUT FPT'S STOCK ISSUANCE Ill A brief overview of FPT's stock issuance activities

In 2002, FPT Corporation started equitization In 2006, FPT made its first trading day

on December 13, 2006, with the closing price of the first trading session (thousand of VND) was 400.0, and the first stock volume was 60,810,230

1 Equity and shareholder information

¢ Stock information

Name of issuer: FPT Corporation

Securities name: Shares of FPT Joint Stock Company

Stock code: FPT

ISIN code: VN000000FPTI

e Shareholder structure

Foreign shareholders

Foreign internal State shareholders shareholders Other domestic

shareholders:

49% 23.15%

21.83%

e FPT's stock price

Figure 1 FPT stock price chart In the last 6 months

According to the chart above, the stock price on October 6, 2022 has many fluctuations from April to May, the stock price increases May to June has a difference in trend From the beginning of June to the middle of June, the stock price continuously increased, but from the end of June to September, the share price remained stable From September to October, the stock price fell to the lowest level in the past 6 months

Number of shares to be issued 1.097.026.572

Denominations 10.000 VND/one stock

The Company plans to issue 2,107,000 ESOP shares to senior management of the Company The offering price is 10,000 VND/share, and the total value of issuance at par value is more than 21 billion VND

The Company plans to issue 2,107,000 ESOP shares for senior leaders of the

Company and 4,537,265 ESOP shares for employees of level 4 and above This stock will

be restricted from being transferred for 3 years and according to the attached list, 171 employees can buy ESOP shares this time

Regarding the dividend payment plan in 2021, FPT plans to pay a cash dividend at the

rate of 20% In addition, FPT will pay dividends in shares, at the rate of 20%, time and pay dividends in cash

Regarding the cash dividend policy in 2022, the Company is expected to continue to maintain the rate of 20% However, the ratio may be decided again in the 2023 Annual

General Meeting of Shareholders

2 Conditions and purpose of issuing shares of FPT

2.1 Conditions for allowing FPT to issue shares

® The actual minimum charter capital as of the issuance date is more than 10 billion

VND

® Profitable production and business activities in the last 2 consecutive years, up to the

date of application for issuance permit, healthy financial situation, and prospects for development (duration of 2 years including the time before implementation of equitization)

e There is a feasible plan for the use of capital obtained from the issuance, which is

approved by the general meeting of shareholders

¢ Board member, Director (Chairman of the Board is Mr Nguyen Gia Binh) has to

experience in business management

® A minimum of 20% of the company's share capital is sold per 100 non-business

investors In case the enterprise's capital is from 1 billion VND or more, this

minimum ratio is 15%

® Founding shareholders hold at least 20% of the company's share capital at the end of the issuance and hold this level for at least 3 years from the end of the issuance 2.2 Purpose of issuing shares of FPT

e Raise capital in the prrmary market issue of shares, and raise capital in the secondary

market

e Issuing shares to pay dividends (the amount of profit earned from the company's business)

® To pay tribute to people with meritorious services, major shareholders of the

enterprise; incentives for officers and employees

IV The stock performance of FPT in the period of 2021-2022

Figure 2 The price movement of FPT shares in the HOSE trading session on October 5,

2022

In the chart above we see the stock price on October 5, 2022, averaged 79,000 VND/share, but there was a period when the stock price peaked at over 80,000 VND/share

CTCP FPT, 1D, HOSE O 78900.00 H 78900.00 L 77000.00 C 77100.00 ® Thời gian th

ở ) 970

In

mm 4® 'cl¿0l (1| oax¿e- { a lÌ

[FT TT WTTtrì:ril Hn Ait tad tl Ïllll

X

Figure 3 Recent FPT trading volume on HOSE

KBSV said that it uses two valuation methods: discounted cash flow to owners (FCFE) and correlation comparison of P/E ratios of companies in the same industry with the same capital size in developing markets Asia for technology and telecommunications For the education segment due to its small contribution to expected profit and the lack of separation between the education and investment segments, KBSV assumes the current P/E 1s reasonable Combining the above two valuation methods with the ratio of 50-50 to get the final fair price for FPT shares is 122,000 VND/share, 33.2% higher than the price on

11/02/2022

Currently, FPT shares are trading at 92,000 VND/share, down slightly from the peak reached in October 2021, when FPT stock was trading at 99,000 VND/share

V OPERATION SITUATION OF FPT IN 2022 AND EFFECTIVE ASSESSMENT OF SHARE ISSUANCE

1 Operational Status

During the period from 2018 to half the beginning of the year 2022 despite the situation of the Covid 19 epidemic FPT has always maintained its upward momentum and good growth Good growth of revenue and profit Profits over the years are still consistently achieved at an average of 20% through the first half of the year 2022 sales net and pre-tax

profit of the business industry is 19.8 thousand VND respectively billion dongs and 3.6 trillion dongs An increase of more than 22% over the same period last year as well as 47 %o completed compared to the next plan for the whole year FPT's profit margin has also grown

slightly over the years, averaging around 0.5% per year in the first half of 2022, and the

company's profit margin reached 18.3%

Revenue - Profit (Billion VND)

45,000 18.50%

40,000

35,000 : 30,000 17.50%

25,000

17.00%

20,000

10,000

16.00%

5,000

0 15.50%

018 2019 2020 2021 2022F 2021H 2022H

mmm Netsales mam Net profit (loss) before tax Net profit margin before tax

Figure 4 Revenue-Profit of FPT

Currently, FPT shares are outstanding at 1,957,600,000 shares In, the person holding the largest number of shares is Mr Truong Gia Binh - Chairman of the Board of Directors holding 7%, equivalent to 76,741,442 shares Shareholders ranked 2nd and 3rd in stock holdings are State Capital Investment Corporation (SCIC) and Macquarie Bank Limited OBU respectively

2, Investment segments

10

BG , Digital a8 | Fpt Online Gi » Telecom

8 Smart Clouc 8 Information

[P| ® e® System GG |, Software

Currently, FPT operates in three main business segments: business technology, telecommunications, and education sex Profit from the water technology segment Outside,

It mainly comes from FPT Software, while FPT Digital has just become a company established in 2021, for the purpose of specializing in providing transfer consulting services

Changing the number should not bring much profit for FPT For the domestic technology

segment, almost all revenue and profit mainly come from the information system, while FPT SmartCloud is also a base vn on the enterprise software platform has just come into operation, so it is also not yet profitable much for business In terms of telecommunications, revenue is profitable The company's profit comes from two sides: service telecommunications and 50 FPT Telecom and content The number is located at FPT Online

In terms of education revenue and profit mainly come from FPT education Despite the growth, however, the contribution structure of the arrays business has not changed too much

from 2018 until the time the first half of the year 2022 Technology is always a contributing

area the most in FPT's total revenue when it always reaches 55 to about 60%, then the telecommunications segment contribution is at 35% to 38% and the education segment only accounts for the proportion of less than 10%

3 Evaluating the efficiency of stock issuance

3.1 Evaluation of the business segment

® Business results by block in the first half of the year, Technology segment is having

the largest proportion in terms of both revenue (57%) and profit before tax (45%)

11