FPT Retail (FRT) [OUTPERFORM +12.

4%] Update Report

Industry: Retailing 2021 2022F 2023F 2024F FRT VNI

400%
Report Date: August 25, 2022 Rev Growth 53.4% 33.3% 32.2% 23.3%
300%
Current Price: VND88,500 EPS Growth 1948% 15.6% 23.9% 22.5%
Target Price: VND99,000 GPM 14.0% 15.1% 15.8% 16.3% 200%
Last Target Price*: VND97,000 NPM 2.0% 1.7% 1.6% 1.6% 100%
Upside to TP: 11.9% EV/EBITDA 25.0x 19.0x 14.4x 11.2x 0%
Dividend Yield: 0.6% P/Op CF -9.8x -11.4x -19.5x -38.0x -100%
TSR: 12.4% P/E 24.4x 21.1x 17.0x 13.9x Aug-21 Nov-21 Feb-22 May-22 Aug-22

Market Cap: USD456mn FRT MWG VNI Company Overview

Foreign Room: USD140mn P/E (ttm) 17.4x 19.4x 13.6x Established in 2012, FPT Retail is the second-largest
ADTV30D: USD5.5mn P/B (curr) 5.7x 4.3x 2.1x mobile phone retailer in Vietnam. To sustain long-
State Ownership: 0% Net D/E 109.8% 27.6% N/A term growth, the company is rolling out its Long Chau
Outstanding Shares*: 118.5 mn ROE 39.2% 24.2% 15.5% pharmacy chain.
Fully Diluted Shares*: 118.5 mn ROA 6.9% 8.7% 2.5%
3-yr PEG: 0.9 *Adjusted for 50% stock dividend payment in June 2022

Ha Huynh
Analyst
Pharmacy is key growth driver
ha.huynh@vcsc.com.vn • We reiterate our OUTPERFORM rating and increase our target price (TP) for FRT by 2%. We
+8428 3914 3588 ext. 185 maintain our view that the Long Chau (LC) pharmacy chain — which is FRT’s growth engine —
Nam Hoang
is on track for a sustainable growth phase with improved profitability.
Senior Manager • Our higher TP is derived from increasing our valuation for LC’s equity by 4% as we raise our
nam.hoang@vcsc,com.vn assumptions for blended sales per store and gross profit margin in 2031F (terminal year) by
+848 3914 3588 ext. 127
18% and 100 bps vs our previous forecasts, respectively. This is partly offset by (1) decreasing
FPT Shop’s aggregate 2022-2024F NPAT by 1%, (2) lowering LC’s aggregate 2022-2024F
NPAT by 27% and (3) our increased risk-free rate and in turn cost of equity assumption by 50
bps.
• Downside risks: LC’s store rollout and profitability underperforming expectations; stiff
competition from MWG, which is accelerating the expansion of its Apple authorized reseller
format and pharmacy chains; worse-than-expected impact from inflation and/or an economic
slowdown on discretionary spending.
We remain positive on the prospects of LC, which is accelerating its store expansion to
consolidate market share. As concerns regarding COVID-19 subsided and activities have returned
to normal, LC’s average monthly sales/store normalized from a peak of VND1.5bn in Q1 2022 to
VND1.0bn in Q2 2022. Although monthly sales/store dropped below VND1bn in April-May 2022, they
accelerated to ~VND1.1bn in June 2022. In addition, LC’s profitability in H1 2022 continued to beat
our expectation as its gross margin was 22.6% vs 20.6% in 2021 and our previous full-year 2022
forecast of 21.6%. After more than two years of COVID-19, we believe vitamins, minerals and immune-
support products have become essential and that buying medicinal products is no longer the sole
reason customers visit pharmacies. With LC’s current product mix of 55% pharmaceutical products,
35% supplements and the rest from medical apparatuses, we believe LC is well positioned for
sustainable growth in average monthly sales/store with improved profitability. As a result, we increase
(1) our 2031F blended monthly sales per store assumption by 18% to ~VND1.4bn and (2) our 2031F
GPM assumption by 100 bps to ~24% vs management’s target for long-term GPM of 25% for LC.
We forecast FPT Shop (mobile business) will achieve a revenue CAGR of 17% in 2022-2024F,
which is supported by its stronghold in the iPhone and laptop categories but partly offset by
fierce competition. We expect strong iPhone sales — which accounted for ~35% of FPT Shop’s
revenue in 2021 — will continue to drive FRT’s sales in 2022-2024F as we believe the share of
authorized Apple products in Vietnam could rise to 90% in the next few years due to (1) Apple’s more
supportive policies in Vietnam and (2) robust demand for Apple products. However, we continue to
believe the medium-term revenue growth of FRT’s mobile segment will be limited due to increasing
competition. In terms of Apple products, Mobile World (HOSE: MWG) has ramped up its rollout of
TopZone stores along with a prolonged promotional campaign to attract buyers.

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> August 25, 2022 | 1
 H1 2022: Pharmacy business remained profitable in H1 2022
Figure 1: FRT’s H1 2022 results
VND bn H1 2021 H1 2022 YoY VCSC comments
HOLD
Revenue 9,024 13,999 55%
Driven by (1) 35% YoY growth in laptop sales to
VND2.3tn (USD99mn) and (2) strong demand for
iPhones. According to German market research
company Gfk, the sell-out smartphone volume growth
FPT Shop 7,688 10,048 31% of iPhone in Vietnam was ~30% YoY in H1 2022 and
outperformed a high-20s industry growth rate. Online
sales increased 40% YoY to VND2.6tn (USD114mn),
accounting for 26% of FPT Shop’s revenue in H1
2022.
Revenue surged due to (1) rapid store expansion and
(2) a YoY increase in average monthly sales/store.
As COVID-19 subsided and demand for healthcare
Pharmacy 1,336 3,951 196%
products eased, LC’s average monthly revenue/store
normalized from a peak of nearly VND1.5bn in Q1
2022 to nearly VND1.0bn in Q2 2022.
Online sales* 1,870 2,618 40%
Gross profit 1,190 2,176 83%
Mobile 912 1,252 37%
Pharmacy 278 924 232%
Selling Due to aggressive store expansion that escalated
-889 -1,508 70%
expenses rent and salary expenses.
G&A expenses -249 -390 57%
EBIT 53 279 424%
Non-operating
23 -16 -169%
profits/losses
PBT 76 263 245%
NPAT-MI 61 211 246%
FPT Shop 60 186 209%
Pharmacy 1 26 2,410%

Margins
GPM 13.2% 15.5%
FPT Shop 11.9% 12.5%
Pharmacy 20.8% 23.4%
EBIT margin 0.6% 2.0%
Net margin widened primarily thanks to operating
NPAT-MI leverage of the pharmacy business that was backed
0.7% 1.5%
margin by scale and product mix as LC’s NPAT-MI surged
26x YoY in H1 2022.
Source: FRT, VCSC. Note: * Online sales are included in FPT Shop’s revenue.

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> August 25, 2022 | 2
 2022F: We cut our NPAT-MI forecast by 11% due to higher-than-
expected selling expenses
HOLD
Figure 2: VCSC’s 2022 forecasts
2022F
2022F 2022F
VND bn 2021 new VCSC comments on 2022F
old new
YoY
Revenue 22,495 28,278 29,979 33%
We project 120 new stores (vs 60 in our previous
Update Report) in 2022 as FPT Shop’s rollout
progress is tracking ahead our previous
expectation.
We increase our 2022F SSSG assumption to mid-
FPT Shop 18,518 20,581 22,269 20%
20s rate (vs mid-single digit previously) due to
outperforming growth of iPhones sales in H1
2022, which we believe signals stellar iPhone
sales in H2 2022 upon the launch of the iPhone
14.
Thanks to (1) 400 projected new stores in 2022
that will bring LC’s store count to 800 by YE2022
Pharmacy 3,977 7,697 7,709 94%
and (2) full-year contributions from stores opened
in 2021.
Gross profit 3,152 4,264 4,537 44%
Mobile 2,333 2,604 2,797 20%
We increase LC’s GPM by 100 bps as LC’s H1
Pharmacy 818 1,660 1,740 113%
2022 GPM tracked ahead of our expectation.
We forecast selling expenses/sales will rise 110
bps YoY to 10.3% (from 9.8% in our previous
forecast) due to FRT’s significant number of new
stores that escalated rent and salary expenses, in
Selling expenses -2,059 -2,768 -3,079 50% addition to its plans to ramp up its foundational
investments in marketing, logistics and IT. Our
upward revision is due to H1 2022 selling
expenses tracking ahead of our previous
expectation.
G&A expenses -598 -782 -822 37%
EBIT 495 714 636 29% Due to our increased selling expense forecast.
Non-operating
59 0 0 -100%
profits/losses
PBT 554 714 636 15%
NPAT-MI 444 576 512 15%
FPT Shop 420 503 465 11%
Pharmacy 23 73 47 100%

Margins
GPM 14.0% 15.1% 15.1%
FPT Shop 12.6% 12.7% 12.6%
Pharmacy 20.6% 21.6% 22.6% Thanks to a larger scale and better product mix.
EBIT margin 2.2% 2.5% 2.1%
NPAT-MI margin 2.0% 2.0% 1.7%
Source: VCSC

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> August 25, 2022 | 3
 Major revisions to our 2022-2026F forecasts
We increase our 2022-2026F aggregate revenue forecast for FRT’s mobile segment by 29% mainly
HOLD
due to our higher SSSG assumptions in 2022/2023F that increase to 25%/15% vs our previous
assumptions of 7%/3%, respectively, due to the outperformance of iPhone sales in H1 2022, which
tracked ahead of our previous expectation. Nevertheless, we cut our aggregate NPAT projection for
this segment by 10% in 2022-2026F, which is primarily driven by our lower 2024F-2026F GPM
assumption for the non-accessory (i.e., smartphone and laptop) retail business that has been
adjusted down to 11%/12%/12% vs 12%/12%/13% in our previous forecast mainly due to our view
that intense competition will erode this subsegment’s margin.
Furthermore, we increase our 2022-2026F aggregate revenue forecast for LC by 11%, which is
primarily driven by our 7%/2% higher blended sales per store assumptions for 2022F/23F. That said,
we decrease our aggregate NPAT forecast for LC in 2022-2026F by 18% vs our previous forecast
mainly due to our upward revision in SG&A/sales as we expect 300-400 new stores opened each
year in 2022-2026 that will be accompanied by higher rent and salary expenses. As we raise our
GPM assumptions for LC by ~80-100 bps each year in 2022-2031F and expect higher blended sales
per store in our forecast period, our 2022-2031F aggregated NPAT projection for LC increased by
4%. We believe when LC’s store rollout slows down after 2027, the pharmacy chain will further
improve its gross margin.
Figure 3: Summary of our major forecast revisions
Aggregate
Aggregate
VND bn 2022F 2023F 2024F 2025F 2026F New vs
2022F-26F
Old
New forecasts
Total revenue 29,979 39,621 48,849 57,614 65,506 241,569 22%
Mobile 22,269 26,929 30,674 33,293 35,624 148,789 29%
Pharmacy 7,709 12,692 18,176 24,321 29,882 92,780 11%
EBIT 636 823 1,045 1,344 1,783 5,631 -11%
NPAT 512 633 774 974 1,284 4,177 -12%
Mobile 465 551 614 676 772 3,078 -10%
Pharmacy 47 82 160 298 513 1,099 -18%

Margins
Mobile GPM 12.6% 12.6% 12.6% 12.6% 12.6%
Mobile NPM 2.1% 2.0% 2.0% 2.0% 2.2%
Pharmacy GPM 22.6% 22.6% 22.7% 22.9% 23.2%
Pharmacy NPM 0.6% 0.6% 0.9% 1.2% 1.7%

Mobile store count 767 817 867 867 867

Pharmacy store count 800 1,200 1,600 2,000 2,300
Old forecasts
Total revenue 28,278 34,454 39,914 45,394 50,663 198,702
Mobile 20,581 22,172 23,274 24,178 25,122 115,327
Pharmacy 7,697 12,282 16,640 21,216 25,541 83,375
EBIT 714 854 1,091 1,578 2,072 6,309
NPAT 576 652 814 1,176 1,554 4,771
Mobile 503 546 598 803 987 3,438
Pharmacy 73 106 216 372 566 1,333

Margins
Mobile GPM 12.7% 12.7% 12.8% 13.5% 13.9%
Mobile NPM 2.4% 2.5% 2.6% 3.3% 3.9%
Pharmacy GPM 21.6% 21.5% 21.8% 22.1% 22.4%
Pharmacy NPM 0.9% 0.9% 1.3% 1.8% 2.2%

Mobile store count 707 757 757 757 757

Pharmacy store count 800 1,200 1,600 2,000 2,300
Source: VCSC

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> August 25, 2022 | 4
 Valuation
Our valuation approach for FRT consists of (1) a P/E valuation for the mobile business — in which
our target P/E for FPT Shop is at a 30% discount compared to our implied target P/E for MWG’s
HOLD
phone & electronics businesses of ~13x to reflect FRT’s much smaller scale and financial profile
(e.g., weaker profit margins) compared to MWG — and (2) a 10-year DCF model for the pharmacy
business.
Figure 4: Summary of VCSC’s valuation for FRT
Equity value
Method
(VND bn)
Mobile (FPT Shop) PER @ 9.1x 4,482
(1)
Long Chau (FPT Pharma) DCF 7,211
Total equity value for FRT 11,693
Outstanding shares (millions) 118.5
Value per share (VND) 99,000
2022F/2023F PERs at TP 23.6x/19.0x
(1) weighted
Source: VCSC; by FRT’s 85% ownership in FPT Pharma.

Discounted Cash Flows – Long Chau (FPT Pharma)

Figure 5: DCF valuation for Long Chau
Cost of Capital Old New FCFF (10-year) VND bn

Beta 1.0 1.0 PV of Free Cash Flow 2,200

Market Risk Premium % 7.0 7.0 PV of Terminal Val (3.0% g) 7,379
Risk Free Rate % 5.5 6.0 PV of FCF and TV 9,579
Cost of Equity % 12.5 13.0 + Cash & ST investments 114
Cost of Debt % 5.0 5.0 - Debt 1,217
Debt % 10 10 - Minority Interest 0
Equity % 90 90 Equity Value 8,477
Corporate Tax Rate % 20 20
WACC % 11.7 12.1
Source: VCSC

Figure 6: Cash flow projections for Long Chau

VND bn 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

EBIT 116 206 361 604 950 1,332 1,746 2,128 2,340 2,484
- Tax 0 -5 -47 -88 -151 -226 -312 -394 -446 -482
+ Depreciation 89 158 222 283 319 308 275 234 184 152
- Capex -550 -230 -421 -264 -214 -154 -123 -75 -62 -62
- WC increase -866 -622 -604 -581 -195 9 91 273 -205 -162
Free Cash Flow -1,211 -494 -489 -45 709 1,270 1,677 2,167 1,810 1,930
PV of FCF -1,143 -416 -367 -30 424 677 798 920 686 652
Cumulative PV of FCF -1,143 -1,559 -1,927 -1,957 -1,533 -856 -58 863 1,548 2,200
Source: VCSC

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> August 25, 2022 | 5
 Figure 7: Sensitivity analysis of our target price for FRT in relation to pharma business DCF’s
WACC and terminal growth rate, ceteris paribus
FRT Target
Price (VND)
WACC HOLD
11.1% 11.6% 12.1% 12.6% 13.1%
1% 94,000 91,000 88,000 86,000 83,000
Terminal 2% 100,000 96,000 93,000 90,000 87,000
growth (g) 3% 107,000 103,000 99,000 95,000 92,000
4% 116,000 111,000 106,000 101,000 98,000
5% 128,000 121,000 115,000 110,000 105,000
Source: VCSC

Recommendation History
Figure 8: Historical VCSC target price vs share price (VND/share) (adjusted for stock dividend
payment)

Actual price Target price

120,000
O-PF O-PF
97,000 99,000
100,000

M-PF
80,000
73,000
U-PF
60,000 58,000
M-PF
U-PF 38,000
40,000
SELL M-PF 23,000
U-PF
13,000 13,000 16,000
20,000

-
Jun-21

Jun-22
Feb-21

Feb-22
Aug-20

Dec-20

Aug-21

Dec-21

Aug-22
Oct-20

Oct-21
Apr-21

Apr-22

Source: Bloomberg, VCSC

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> August 25, 2022 | 6
 Financial Statements
P&L (VND bn) 2021 2022F 2023F 2024F B/S (VND bn) 2021 2022F 2023F 2024F
Revenue 22,495 29,979 39,621 48,849 Cash & equivalents 1,105 1,868 HOLD
3,242
4,626
COGS -19,343 -25,442 -33,374 -40,869 ST investments 1,821 1,821 1,821 1,821
Gross Profit 3,152 4,537 6,247 7,981 Accounts receivable 80 123 149 170
Sales & Marketing exp -2,059 -3,079 -4,325 -5,584 Inventories 4,928 6,576 8,592 10,501
General & Admin exp -598 -822 -1,099 -1,352 Other current assets 2,243 2,243 2,243 2,243
Operating Profit 495 636 823 1,045 Total Current assets 10,177 12,631 16,047 19,360
Financial income 198 242 260 300 Fixed assets, gross 192 500 532 751
Financial expenses -146 -241 -293 -342 - Depreciation -20 -40 -83 -151
- o/w interest expense -132 -231 -283 -332 Fixed assets, net 172 460 450 600
Associates 0 0 0 0 LT investments 0 0 0 0
Net other income/(loss) 8 0 0 0 Other LT assets 392 790 1,064 1,288
Profit before Tax 554 636 790 1,003 Total LT assets 564 1,250 1,514 1,888
Income Tax -110 -116 -143 -201 Total Assets 10,741 13,880 17,561 21,248
NPAT before MI 444 520 648 802
Minority Interest 0 -8 -15 -28 Accounts payable 2,331 2,964 4,052 5,059
NPAT less MI, reported 444 512 633 774 Short-term debt 6,047 8,094 10,098 12,035
NPAT less MI, adjusted 444 512 633 774 Other ST liabilities 683 683 683 683
Total current liabilities 9,061 11,740 14,833 17,777
EBITDA 500 657 867 1,114 Long term debt 0 0 0 0
EPS reported, VND 3,634 4,201 5,204 6,377 Other LT liabilities 0 0 0 0
EPS adjusted(1), VND 3,634 4,201 5,204 6,377 Total Liabilities 9,062 11,740 14,833 17,777
EPS diluted, adj(1), VND 3,634 4,201 5,204 6,377
DPS, VND 500 500 500 500 Preferred Equity 0 0 0 0
DPS/EPS (%) 14% 12% 10% 8% Paid in capital 790 1,185 1,185 1,185
(1) Adjusted for one-offs Share premium 0 0 0 0
RATIOS 2021 2022F 2023F 2024F Retained earnings 872 930 1,504 2,218
Growth Other equity 0 0 0 0
Revenue growth 53% 33% 32% 23% Minority interest 17 25 40 68
Op profit (EBIT) growth 540% 29% 29% 27% Total equity 1,679 2,140 2,728 3,471
PBT growth 1850% 15% 24% 27% Liabilities & equity 10,741 13,880 17,561 21,248
EPS growth, adjusted 1949% 16% 24% 23%
Y/E shares out, mn 118.5 118.5 118.5 118.5
Profitability Y/E treasury shares, mn 0.0 0.0 0.0 0.0
Gross Profit Margin 14.0% 15.1% 15.8% 16.3% CASH FLOW (VND bn) 2021 2022F 2023F 2024F
Op Profit, (EBIT) Margin 2.2% 2.1% 2.1% 2.1% Y/S Cash Balance 702 1,105 1,868 3,242
EBITDA Margin 2.2% 2.2% 2.2% 2.3% Net Income 444 512 633 774
NPAT-MI Margin, adj, 2.0% 1.7% 1.6% 1.6% Dep, & amortization 4 20 42 68
ROE 30.9% 27.1% 26.4% 25.4% Change in Working Cap -1,766 -1,058 -954 -922
ROA 5.5% 4.2% 4.0% 4.0% Other adjustments 248 -390 -260 -195
Cash from Operations -1,070 -916 -538 -276
Efficiency
Days Inventory On Hand 63.8 82.5 82.9 85.3 Capital Expenditures, net -2 -308 -33 -218
Days Accts, Receivable 2.1 1.2 1.3 1.2 Investments, net -2,102 0 0 0
Days Accts, Payable 33.5 38.0 38.4 40.7 Cash from Investments -2,104 -308 -33 -218
Cash Conversion Days 32.4 45.8 45.8 45.8
Dividends Paid 0 -59 -59 -59
Liquidity ∆ in Share Capital 0 0 0 0
Current Ratio x 1.1 1.1 1.1 1.1 ∆ in ST debt 3,561 2,046 2,004 1,937
Quick Ratio x 0.6 0.5 0.5 0.5 ∆ in LT debt 0 0 0 0
Cash Ratio x 0.6 0.5 0.5 0.5 Other financing C/F 17 0 0 0
Debt / Assets 56% 58% 58% 57% Cash from Financing 3,578 1,987 1,945 1,878
Debt / Capital 78% 79% 79% 78%
Net Debt / Equity 46% 96% 99% 93% Net Change in Cash 404 763 1,374 1,384
Interest Coverage x 3.7 2.7 2.9 3.1 Ending Cash Balance 1,105 1,868 3,242 4,626

Source: Company data, VCSC

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 VCSC Rating System
Stock ratings are set based on projected total shareholder return (TSR), defined as (target price – current price)/current
price + dividend yield, and are not related to market performance. HOLD
Equity rating key Definition

BUY If the projected TSR is 20% or higher

OUTPERFORM If the projected TSR is between 10% and 20%

MARKET PERFORM If the projected TSR is between -10% and 10%

UNDERPERFORM If the projected TSR is between -10% and -20%

SELL If the projected TSR is -20% or lower

The company is or may be covered by the Research Department but no rating or

target price is assigned either voluntarily or to comply with applicable regulation
NOT RATED
and/or firm policies in certain circumstances, including when VCSC is acting in an
advisory capacity in a merger or strategic transaction involving the company.

A rating may be suspended, or coverage terminated, if fundamental information is

RATING SUSPENDED, deemed insufficient to determine a target price or investment rating or due to a
COVERAGE TERMINATED reallocation of research resources. Any previous investment rating and target price
are no longer in effect.

Unless otherwise specified, these performance parameters are set with a 12-month horizon. Movement in share prices may
cause a temporary mismatch between the latest published rating and projected TSR for a stock based on its market price
and the latest published target price.

Target prices are generally based on the analyst's assessment of the stock’s fair value over a 12-month horizon. However,
the target price may differ from the analyst’s fair value if the analyst believes that the market will not price the stock in line
with assessed fair value over the specified time horizon.

Risks: Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely
affect the value, price or income of any security or related instrument mentioned in this report. For investment advice, trade
execution or other enquiries, clients should contact their local sales representative.

See important disclosure at the end of this document www.vcsc.com.vn | VCSC<GO> August 25, 2022 | 8
 Disclaimer
Analyst Certification of Independence
HOLD
We, Ha Huynh and Nam Hoang, hereby certify that the views expressed in this report accurately reflect our personal views about the subject
securities or issuers. We also certify that no part of our compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views expressed in this report. The equity research analysts responsible for the preparation of this report receive
compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm
revenues, which include revenues from, among other business units, Institutional Equities and Investment Banking.

VCSC and its officers, directors and employees may have positions in any securities mentioned in this document (or in any related investment)
and may from time to time add to or dispose of any such securities (or investment).VCSC may have, within the last three years, served as
manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities
mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in
relation to the investment concerned or a related investment.

Copyright 2013 Viet Capital Securities Company “VCSC”. All rights reserved. This report has been prepared on the basis of information believed
to be reliable at the time of publication. VCSC makes no representation or warranty regarding the completeness and accuracy of such
information. Opinions, estimates and projection expressed in this report represent the current views of the author at the date of publication
only. They do not necessarily reflect the opinions of VCSC and are subject to change without notice. This report is provided, for information
purposes only, to institutional investors and retail clients of VCSC in Vietnam and overseas in accordance to relevant laws and regulations
explicit to the country where this report is distributed, and does not constitute an offer or solicitation to buy or sell any securities discussed
herein in any jurisdiction. Investors must make their investment decisions based upon independent advice subject to their particular financial
situation and investment objectives. This report may not be copied, reproduced, published or redistributed by any person for any purpose
without the written permission of an authorized representative of VCSC. Please cite sources when quoting.

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any third party or outside Australia without the prior written consent of VCSC. For the purposes of this paragraph the terms "wholesale client"
and "retail client" have the meanings given to them in section 761G of the Corporations Act 2001. Hong Kong: The 1% ownership disclosure
as of the previous month end satisfies the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by
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in the case of share trading, and that a loss may occur due to the exchange rate in the case of foreign share trading. In the case of share
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report; for securities where the holding is 1% or greater, the specific holding is disclosed in the Important Disclosures section above. India: For
private circulation only, not for sale. Pakistan: For private circulation only, not for sale. New Zealand: This material is issued and distributed
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of their business, habitually invest money. VCSC does not issue or distribute this material to members of "the public" as determined in
accordance with section 3 of the Securities Act 1978. The recipient of this material must not distribute it to any third party or outside New
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merits of the securities described herein, and any representation to the contrary is an offence. Dubai: This report has been issued to persons
regarded as professional clients as defined under the DFSA rules. United States: This research report prepared by VCSC is distributed in the
United States to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by
Decker&Co, LLC, a broker-dealer registered in the US (registered under Section 15 of Securities Exchange Act of 1934, as amended). All
responsibility for the distribution of this report by Decker&Co, LLC in the US shall be borne by Decker&Co, LLC. All resulting transactions by a
US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if VCSC Broker or
Decker&Co, LLC is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy
yourself before reading it that Decker&Co, LLC and VCSC is permitted to provide research material concerning investment to you under
relevant legislation and regulations.

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 Contacts
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Tuan Nhan
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Quynh Chau Dung Nguyen
Managing Director Director
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+84 28 3914 3588, ext 222 +84 28 3914 3588, ext 136
quynh.chau@vcsc.com.vn dung.nguyen@vcsc.com.vn
August 25, 2022 | 10