Viet Dragon Securities - Analyst Pin-board STK: Social distancing to disrupt recovery path

Report

Viet Dragon Securities

Son Tran

Analyst Pin-board STK: Social distancing to disrupt recovery path

In 1H2021, STK recorded revenue of VND 1,077 Bn (or USD 47 Mn, +24% YoY) and NPAT of VND 141 Bn (or USD 6 Mn, +157% YoY). This strong growth is attributable to: 1) the recovery of orders in major markets, 2) a product mix shift towards high-margin recycled yarn.
Social distancing in Vietnam has been delaying STK's orders due to supply chain disruptions and reducing the number of workers at the factory.
Long-term growth potential remains bright, mainly driven by: 1) strong demand for recycled yarn, and 2) doubling capacity by adding Unitex factory to boost recycled yarn revenue.
STK’s market price rallied 40% since early June 2021, reflecting the expectation of profit recovery in 2021 and the rosy long-term outlook of recycled yarn. Risks that need to be monitored further include prolonged social distancing and the progress of the Unitex factory. We are revising the target price.

04/08/2021 5 EN

Provider

Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”

See profile

Analysts

Son Tran

Other Reports from Viet Dragon Securities

Tung Do

Tung Do

CTG - Solid Growth Outlook as Provisioning Pressures Subside

We have updated our valuation for the shares of Vietnam Joint Stock Commercial Bank for Industry and Trade (HSX: CTG) with a 12-month target price of VND 46,200, equivalent to a projected 2025 P/B ratio of 1.4x. • Easing Credit Cost Pressures in the Medium Term. Since 2018, CTG has been addressing legacy non-performing loans (NPLs) from prior cycles and those arising from the Covid-19 pandemic, amidst fluctuating interest rates. Measures include settling debts with the Vietnam Asset Management Company (VAMC), restructuring loans, offering interest rate reductions to high-potential clients, bo...

15h / 40m 15h / 40m 41 EN

Phuong Nguyen

Phuong Nguyen

BREAKING ABOVE 1,300 POINTS

Despite the psychological resistance threshold of 1,300 points, the market continued its upward trend and surpassed this psychological threshold. Liquidity increased compared to the previous session, indicating that cash flow continues to create supportive momentum for the market and absorb profit-taking supply, especially with relatively strong net buying activity from foreign investors. The signal of moving past the 1,300 point threshold shows that investor sentiment is still positive and may help the market extend its upward phase in the near future. The next resistance area for the marke...

16h / 31m 16h / 31m 10 EN

Chinh Nguyen

Chinh Nguyen

Comparison of domestic natural gas and LNG fuel sources

• According to the revised Power Plan VIII, the electricity demand of the whole system is expected to reach 500 billion kWh by 2030 (+7%/year), requiring an increase in installed capacity of 12%/year. Gas power increased the most (+21%/year), mainly thanks to projects using LNG instead of domestic gas. • Domestic gas production is declining due to old wells, causing supply to be limited in the short term. In contrast, imported LNG is highly flexible, helping to diversify the supply. However, the cost is higher due to liquefaction, transportation and regasification. Vietnam is investing heavi...

May 14, 2025 May 14, 2025 7 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Analyst Pin-board STK: Social distancing to disrupt recovery path

CTG - Solid Growth Outlook as Provisioning Pressures Subside

BREAKING ABOVE 1,300 POINTS

Comparison of domestic natural gas and LNG fuel sources

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe