Technology Stocks in Vietnam Experience Decline Amid Global Trend

Strategic Insights -

Amidst the overall uptrend in the Vietnamese stock market since April, the technology group has been an exception, continuing to decline despite the sector's strong prospects with the AI wave. FPT Corporation, the core stock in the technology group, has lost its three-digit mark, falling to VND97,700 ($3.7) per share, down 26% from its peak at the beginning of the year. This decline is largely attributed to foreign investors, who have been net selling FPT shares since the end of July, with a volume of up to 57.7 million units, equivalent to over VND6,000 billion ($227.49 million).

Key Takeaways:

  • FPT Corporation's revenue reached VND38,091 billion ($1.44 billion) in the first seven months of the year, up 11% year-on-year, while profit after tax was VND5,147 billion ($195.15 million), up 20%.
  • The technology and telecommunications segments still play a key role in the group's revenue and profit, but growth rates have slowed down compared to previous years.
  • SSI Research believes that FPT's profit growth in the second half of this year will be moderate, at around 15-16%, due to the weak value of new contracts.
  • Viettel Global reported revenue of VND20,171 billion ($176.19 million) in H1, up 21.6% year-on-year, and profit after tax VND3,289 billion ($124.44 million), up 15.2%.
  • Elcom Technology-Telecommunications JSC reported net sales and service revenue of VND330 billion ($12.49 million) in H1, up 31.4%, and after-tax profit was VND18 billion ($681,000), up 50%.
  • CMC Technology Group reported revenue of VND2,210 billion ($83.6 million) in Q1, up 23%, and profit after tax was VND117 billion ($4.43 million), up 20%.
  • Viettel Post Corporation reported after-tax profit of VND99.7 billion ($3.77 million) in Q2, up 14.6%, mainly due to a slight increase in sales and service revenue.

Statistics:

  • FPT Corporation's share price fell to VND97,700 ($3.7) in July, down 26% from its peak at the beginning of the year.
  • Foreign investors have been net selling FPT shares since the end of July, with a volume of up to 57.7 million units, equivalent to over VND6,000 billion ($227.49 million).
  • FPT Corporation's revenue grew 11% year-on-year to VND38,091 billion ($1.44 billion) in the first seven months of the year.
  • Viettel Global's revenue grew 21.6% year-on-year to VND20,171 billion ($176.19 million) in H1.
  • Elcom Technology-Telecommunications JSC's net sales and service revenue grew 31.4% to VND330 billion ($12.49 million) in H1.
  • CMC Technology Group's revenue grew 23% to VND2,210 billion ($83.6 million) in Q1.

Sources:

  • Global Data Point
  • SyndiGate Media Inc.