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FPT’s Q1 revenue surges 20%

The Saigon Times

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HCMC – FPT Corporation (HOSE: FPT) reported a remarkable surge in revenue and profit in the first quarter of this year.

The company posted a robust year-on-year revenue rise of 20.6% to nearly VND14.1 trillion in the first quarter. Profit before tax soared by 19.5% to over VND2.5 trillion, aligning closely with the company’s projections for the year.

Fueling this impressive growth is FPT’s digital transformation services, which experienced a 36% year-on-year revenue surge to VND2.9 trillion. Notably, the technology sector, encompassing both Domestic IT Services and Global IT Services, played a pivotal role, accounting for 60% of the total revenue and 45% of the pre-tax profit.

Global IT Services, in particular, saw growth of 28.8%, totaling VND7 trillion. Despite challenges such as the depreciation of the Japanese yen against the dollar, FPT recorded a 44.2% revenue spike in Japan.

FPT’s success in securing large contracts from overseas markets further bolstered its position as a global IT services provider. The company clinched 15 major deals, each valued at US$5 million or more, primarily in Japan and other Asia-Pacific countries.

Domestic operations also contributed positively to FPT’s performance, with the Domestic IT Services segment maintaining steady revenue growth of 4.6%, reaching nearly VND1.5 trillion.

The Made-by-FPT ecosystem, featuring core technology platforms like AI, Blockchain, Cloud, IoT, and Lowcode, saw its revenue increasing by a staggering 89.3% over the same period last year to VND498 billion.

Moreover, FPT’s telecommunications services segment grew by 5.1% to about VND3.9 trillion in revenue. Additionally, the education sector saw a 31% expansion to around VND1.8 trillion.

FPT’s stock price surged to its ceiling of VND120,100 per share at today’s market close, April 24, on the back of a strong trading volume of over 10.1 million shares. This rise likely benefits from the recent news of their collaboration with U.S. tech giant Nvidia to establish an artificial intelligence (AI) venture.

The two companies signed a deal yesterday. According to the memorandum of understanding (MOU), FPT plans to invest US$200 million in building an AI facility equipped with Nvidia’s cutting-edge technology, including graphics processing units (GPUs) and software.

Big-cap stocks made strong gains today, sending the VN-Index on the southern bourse up 28.21 points, or 2.4%, to 1,205.61 points, with 435 winners and 69 losers.

Trade totaled 820 million shares valued at VND19.8 trillion, up 5.4% in volume and 13.5% in value compared to the previous session. Block deals contributed 128.6 million shares worth over VND3 trillion.

All bluechips in the VN30 basket, comprising the 30 largest-cap stocks, were advancers. Apart from FPT, GVR also surged to its daily upper limit of VND29,500 per share, with more than 6.2 million shares traded. The VN30-Index rose by 31.8 points, or 2.65%, to 1,232.17 points.

The real estate sector dominated gains in the afternoon session, with five stocks hitting their ceiling prices and more than 10 others recording gains ranging from 4% to over 6%. Developer NVL was the most actively traded stock, with 26.7 million shares changing hands.

The Hanoi Stock Exchange saw 147 stocks advancing and 41 others dipping, sending the HNX-Index up 5.24 points, or 2.35%, to 227.87 points.

There were 84.7 million shares worth VND1.6 trillion matched on the northern exchange.

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