According to the latest report from SSI Research, the years 2024-2025 will mark a new profit cycle for FPT Retail (FRT), with FPT Shop expected to return to profit after reducing inventory and optimizing costs. Long Chau, specializing in pharmaceuticals, is forecasted to continue expanding its store network and improving its profit margin due to its competitive advantage in selling prescription drugs. The company is set to open 400 pharmacies annually to capture market share from competitors who are downsizing due to unsuitable business models. Last year, Long Chau reported a 59% growth in revenue, with projections of reaching 27.3 trillion VND by 2025. A new area, vaccine business, has also contributed 5% to current revenue. SSI estimates Long Chau’s valuation at approximately 1.5 billion USD, while FPT Shop is valued at only 1,754 billion VND. Additionally, Long Chau plans a capital increase in Q1/2025, seen as a factor supporting short-term stock price growth for FRT.
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