FPT [BUY +56.0%] - Expecting robust growth across the board - Update
We reiterate BUY with TP revised +6% due to DCF rollover and a 50 bps reduction in WACC. We project 26% FY17 PBT growth for Software Outsourcing on strong Japanese and US revenue. We expect 24% PBT growth for Telecom Services in FY17 on lower fiberization costs. Trading PBT will come off a low FY16 base to grow an estimated 36% despite muted top line. Dirt cheap valuation with three-year PEG of 0.6. Strong cash flows sustain solid dividend yields.