Its shares have seen a more than 300% increase in value over the past five years while maintaining a valuation of less than 17 times expected earnings over the next twelve months.
In the technological landscape dominated by giants such as Microsoft and Apple, a lesser-known but surprisingly influential name emerges strongly: the Vietnamese FPT. This company, despite its relatively modest stature with a market value of $5.4 billion, has earned an honorable place among the ten favorite technology companies by the world’s top investors
FPT doesn’t just shine among technology companies: it is one of the top choices across all industries in the Asian region for high-performing fund managers. Since going public in late 2006, the company has maintained consistent profitability. FPT financials show a company with no net debt and consistently positive cash flows. Its shares have seen a more than 300% increase in value over the past five years while maintaining a valuation of less than 17 times expected earnings over the next twelve months, an indicator of great interest to investors looking for undervalued opportunities.
FPT was founded in 1988 under the name of Food Processing Technology Company by a group of 13 scientists with a strong passion for technology. Initially, the company focused on the Vietnamese domestic market, supplying computers to the Russian Academy of Sciences and developing technological systems such as an electronic ticketing system for Vietnam Airlines and digital networks for the country’s major banks. Over time, FPT began distributing technology products and expanding into areas such as telecommunications and mergers and acquisitions.
Today, FPT is not only a distributor but also a consultant who helps other companies in digitalization. It has become an authority in artificial intelligence, big data analytics, process automation, and the Internet of Things, with a client portfolio spanning 29 countries and partnerships with tech powerhouses like Microsoft, SAP, and Amazon.
FPT has also invested in the education sector in Vietnam, establishing the country’s first private university, demonstrating an ongoing commitment to promoting local talent. Its international division, FPT Software, has explored foreign markets from an early stage, achieving significant results. This arm of the company has seen 30% annual growth in IT outsourcing services, with ambitious expansion plans in markets such as Japan, the USA, and South Korea.
With the inauguration of FPT Semiconductor, the company added a new dimension to its business, producing the first Vietnamese chip and positioning itself to take advantage of the global diversification of semiconductor suppliers. FPT’s commitment to the semiconductor sector aims to reduce dependence on the Chinese market, with important contracts already signed with companies in Taiwan, South Korea, and Japan.
The funds that invest in FPT are:
1. Magna New Frontiers - Run by Dominic Bokor-Ingram and Stefan Böttcher, who hold a 7.7% stake. This fund has reported a 47% return from FPT shares over the past year.
2. Forum One VinaCapital Vietnam - Thu Nguyen manages this fund, which has 9.6% of its assets invested in FPT. It ranks second among the fund’s investments.
3. Coeli Frontier Markets - Managed by James Bannan and Hans-Henrik Skov, who invested 9.4% of the fund in FPT, making it the fund’s largest investment.
4. TCM Vietnam High Dividend Equity - Managed by Wytze Riemersma and Marco Balk, this fund has 6.9% of its assets in FPT, being the fund’s largest investment.
5. Schroder ISF Frontier Markets Equity - Rami Sidani manages this fund, which holds 4.4% of its assets in FPT, ranking third among the fund’s investments.
Each fund has a specific focus, often concentrated on emerging markets or specific geographical sectors such as Vietnam, and the returns quoted reflect the performance of FPT shares within these funds.
|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to public savings.|
Original article published on Money.it Italy 2024-07-20 07:19:00. Original title: Investire in questa azienda vietnamita è la svolta per il tuo portafoglio. Ecco i fondi da comprare
