Hanoi, October 2, 2025 – Shares of FPT Corporation (HOSE: FPT) – one of the largest information technology service companies in Vietnam – have come under heavy selling pressure in recent sessions, raising questions among investors about why the stock continues to decline despite robust business performance and supportive research upgrades.
Market Performance: Technical Breakdown Raises Concerns
On October 1, 2025, FPT’s share price showed extreme volatility, forming a candlestick with both a long upper and lower shadow – a sign of strong intraday tug-of-war between buyers and sellers. Notably, the stock broke below its August 2025 support zone of VND 97,500–99,500. Technical analysts warn that the next potential downside target lies at the April 2025 trough, around VND 84,300–90,000.
The sustained foreign net selling has been a key source of downward pressure. Unless foreign outflows stabilize, analysts caution that volatility could persist in the short term.
Fundamentals: Strong but Facing Growth Headwinds
FPT remains one of Vietnam’s most resilient technology conglomerates, with consistent double-digit revenue and profit growth over the past five years. According to SSI Research, net revenue is projected to grow 15% in 2026 to VND 81,531 billion, while net profit is expected to rise 16% to VND 12,816 billion. EPS is forecast to reach VND 5,802.
However, the pace of profit growth is expected to slow in the second half of 2025 to 15–16% year-on-year, compared to stronger momentum in previous periods. The key drag comes from the technology segment, where new contract growth has shown signs of stalling.
In contrast, FPT’s telecommunications business is emerging as the main short-term growth driver, helping to stabilize earnings amid macroeconomic headwinds.
Valuation and Analyst Outlook
After the recent correction, SSI has upgraded its recommendation on FPT from Neutral to Outperform, citing attractive valuation and long-term growth prospects. SSI also shifted its valuation model to 2026 earnings and raised its 12-month target price to VND 124,200 per share (from VND 114,800 previously).
At current levels, FPT trades at an estimated 2025 P/E of 21x and 2026 P/E of 18.1x, reflecting a discount compared to its historical valuation multiples and offering upside potential if foreign selling pressure eases.
What Lies Ahead?
The short-term picture for FPT is clouded by external factors such as foreign investor sentiment, global technology demand, and macroeconomic uncertainty. But the company’s long-term fundamentals remain intact, underpinned by Vietnam’s digital transformation, stable cash flows from telecom services, and consistent dividend payouts (VND 2,000 per share annually).
In the near term, investors should brace for further price swings as technical levels are tested. Over the longer horizon, however, FPT continues to stand out as a key play on Vietnam’s technology and digital economy story.
