Company Insight

Century Fiber Corporation (HOSE: STK) is one of the leading synthetic fiber manufacturers with the third largest market share and export value in Vietnam. We assess 2024 as a difficult year for STK as weakening demand for fiber, along with a shortage of orders and exchange rate differences, damages the company's net profit. The NPAT-Mi in 2024 decreased sharply, reaching VND46 billion (-48% YoY). In 2025, we expect STK's business to recover thanks to: (1) The improvement of purchasing power, (2) Unitex Phase 1 will go into operation as planned in Q2/2025 and run at 50% of the factory's capacity, increasing STK's total capacity to 78,000 tons/year (+30% compared to present).

Based on the P/E and DCF methods with weights of 50% and 50% respectively, we update STK's target price at VND29,074, corresponding to an upside of 8%.