STK – A recovery on the horizon
- 2Q23 awaits a recovery. We expected STK’s performance to bottom out in 1Q23 and then recover through 2H23. As a yarn company, we expect STK to lead the rebound as demand picks up in 2H23. We expect STK’s 2Q23 net revenue and NPAT to reach VND 420 bn/USD17.8 mn (+46% QoQ, -20% YoY compared to a high base 1Q22), and VND 33bn/USD 1.4 mn (21x QoQ, -50% YoY), respectively.
- Retain ACCUMULATE; we lift our TP to VND 32,800/share (from 32,500/share). We cut our 2023 earnings forecasts by 39% largely reflecting weak 1H23 results. We roll forward our PEx valuation base to 2023-2024 (from 2023). Accordingly, we raise our TP to VND 32,800/share, implying a 17% upside, based on the closing price of Jun 9th, 2023.
Century Synthetic Fiber Corporation (STK) is a Vietnam-based company operating in the textile industry. The Company is mainly engaged in the manufacture and commerce of synthetic yarns, with major products as draw textured yarns (DTY) and fully drawn yarns (FDY) made from polyester chips. The Company does not only distribute its products to local textile firms, but also supplied them to overseas clothing companies, such as Nike, Adidas, Uniqlo, Columbus and Guess, among others.
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.
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