FPT Corporation: Q2 19 results: High growth, reiterate Buy
All business segments recorded healthy growth yoy. The technology segment continues to sign more synergistic contracts with Intellinet in the US, with an estimated contract value for this year at US$4-5mn. FPT is trading at a trailing PE of 12.5x. The main growth driver will come from software outsourcing. The company has recently divested from retail & trading, while the proportion of information system has become insignificant. Therefore, with the increase in the contribution from software outsourcing and education, we believe that FPT's growth story will be more sustainable.