COMPETITIVE ADVANTAGES OF F88

• Market Leadership and Dominant Scale: F88 is Vietnam’s largest pawnshop chain, far surpassing competitors in its segment in terms of scale and number of stores. According to F88’s statistics, as of December 2024, its network of transaction offices has served over 1 million pawn loan customers, with more than 360,000 customers in 2024 alone. The customer return rate is 55%. As of December 2024, the total outstanding pawn loan balance reached VND 4,585 billion. The company’s network spans 63 provinces and cities, supported by a workforce of over 4,000 employees.
• Expertise in Business Model Development and Product Design: F88 exhibits extensive experience in building scalable business models and designing financial products, with rapid network expansion and stringent risk management policies. The brand enjoys high recognition. Founded by Mr. Phùng Anh Tuấn, who has a proven track record in developing chain-based business models and a strong technological foundation, F88 has effectively scaled its operations.
• Strategic Shareholder Support and Financial Backing: F88 benefits from advisory support and backing from strategic shareholder Mekong Capital and other foreign investment funds. This support enables F88 to effectively address capital allocation challenges for its business operations and maintain a strong credit history, with its bond issuances secured by guaranteed obligations.
• Significant Growth Potential in Consumer and Alternative Finance
• Superior Credit Growth and Operational Efficiency: Compared to competitors in the consumer and pawn loan segments, F88 demonstrates exceptional credit growth and operational performance. Company leadership has outlined targets of over 40% annual revenue and profit growth, with a minimum sustained growth rate of 30% over the next five years. In 2024, F88’s loan portfolio growth reached 22.7%, significantly outperforming the consumer finance industry average of 3.84%. The company’s profitability from lending activities (including interest and fees) is notably impressive (see Appendix 4 for details).

F88 is slated to commence trading on the UPCoM exchange in July 2025, with an ambition to list on the Ho Chi Minh Stock Exchange (HoSE) in 2027, targeting a market capitalization of USD 1 billion.

As of the end of 2024, F88’s equity stood at VND 1,727.8 billion, with 8.4 million shares outstanding (post a projected 2.5% ESOP issuance), resulting in a book value per share (BVPS) of VND 205,690. Currently, F88’s shareholder structure is highly concentrated, with major shareholders holding over 84% of the company’s total shares. Share liquidity is expected to improve following the UPCoM listing, particularly after a planned stock split scheduled for late 2025 (details of the stock dividend plan are outlined in the report).

Backed by Mekong Capital, F88’s distinctive business model in the consumer finance sector positions it as a notable new entrant in the stock market. However, we highlight potential risks, including the business model’s vulnerability to economic downturns, which could lead to elevated non-performing loan ratios, as well as latent legal risks associated with the pawnshop business model.