FPT Corp, Vietnam's biggest listed technology firm, has set a high earning target for 2010 on the bad of its core business.

The Ho Chi Minh Stock Exchange-listed FPT said it targeted to earn 23 trillion dong ($1.2 billion) revenue and a 2.12 trillion dong ($111.6 million) pre-tax profit this year, up 23 and 25 percent, respectively. The targeted figures for many listed Vietnamese firms with the large market cap are around 10-15%. The 2010 earnings per share (EPS) is 8,928 dong, compared to 7,498 dong in 2009.

"FPT will try to maximise profits from its core businesses such as information technology and telecommunications this year,' Truong Gia Binh, FPT's chair told the firm's general shareholder meeting.

With this focus, Binh said his company had signed several contracts worth millions of US dollars including $13 million high-end advanced technology service solution agreement by FPT Information Solution among others.

Phan Duc Trung, an FPT official, told media that demands for software outsourcing and systems integration, which were FPT's strong core business, would increase when the economy recovered.

In 2009, FPT reported a net profit of 1.062 trillion dong ($55.9 million), up 27 percent on year, in which telecommunications, software and related services contributed around 59 percent of FPT profits, Binh said.

FPT is a leading technology firm in Vietnam, focusing on distribution, telecoms, system integration, software export and training. It is one of the most traded stocks by foreign investors, who hold more than a 40 percent stake in the firm, thanks to its strong core businesses.

"With the foreign investors' risk appetite and its strong fundamentals, FPT is a good stock to stick to," recommended an An Binh Securities analyst.

On April 9, FPT shares closed at 86,000 dong each, equivalent to a trailing price to earnings (P/E) ratio of 11.53.

(Source: Intellasia)