STK - Recycled yarn to outpace virgin yarn in recovery
“The pandemic has hurt the world’s demand for yarn and STK’s sales more seriously than our expectations. However, the strategy of focusing on recycled yarn continue to prove its efficiency amid the headwinds. Based on the prospect of the slow recovery of the overall yarn demand in 2H2020 and 2021, we revise down our target price for STK from VND 20,000/share to VND 15,900/share. With a cash dividend of VND 1,500/share in the next 12 months, the total return is 13%. The large adjustment of the market at the end of July seemed priced in the weak performance of 2020. Considering all these factors, we recommend to ACCUMULATE the stock.”
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.
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.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.