Company Insight

Initiate coverage with BUY call and target price at VND 28,544

Century Synthetic Fiber JSC (STK) is one of Vietnam's leading synthetic fiber manufacturers, ranking third in revenue and export value. We initially valued STK shares at VND 28,544, corresponding to a 16% return, using P/E and DCF valuation methods with 50% and 50% weights, with the following key arguments: (i) The development of recycled fiber products, which is expected to drive future growth for STK; (ii) In 2025, Unitex phase 1 factory is expected to come into operation, helping to increase 60% of current performance, thereby contributing to increasing profits for STK, (iii) Demand for textiles is recovering positively.