STK – Still not out of the wood, but getting better
- STK announced its 4Q22 net revenue of VND 430 bn/USD 18.1 mn (-16% QoQ; -13% YoY). NPAT-MI was VND 43 bn/ USD 1.8 mn (-14% QoQ; -43% YoY), mainly due to (1) a sharp decline in total yarn volume, and (2) a higher CIT expense in Q4/2022. Overall, STK’s 2022 net revenue and NPAT-MI were VND 2,115 bn /USD 89.8 mn (+3.5% YoY) and VND 240 bn/USD 10.7 mn (-13.7% YoY), achieving 97% and 98% of our full-year forecasts.
- For 2023, we expect earnings to rebound, particularly in the second half. Due to the subbed demand in 1H23, we lower our 2023 net revenue and NPAT-MI forecasts to VND 2,232 bn/ USD 93.7 mn (+5.4 % YoY) and VND 259 bn/USD 10.9 mn (+7.6% YoY), respectively. 2023 EPS is VND 3,154.
- STK is currently trading at a 2023 forward PER of 9.2x. We have an ACCUMULATE rating with the one-year target price of VND 32,500/share. With an expected cash dividend of VND 1,500/share in the next 12 months, it implies a total return of 12%, based on the closing price of Feb 17th, 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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