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. Based on the P/E and DCF methods with weights of 50% and 50% respectively, we maintain STK's target price at VND 29,074; corresponding to an upside of 15%. Through the 2025 Century Fiber Shareholders' Meeting, we update the audited 2024 business results and STK's 2025 business plan as follows:

In 2024, Century Fiber recorded net revenue of VND 1,210 billion (-15% YoY), gross profit of VND 163 billion (-15% YoY). The NPAT - Mi reached VND 12 billion (-86% YoY), adjusted down 73% compared to before the audit due to changes in accounting for unrealized exchange rate differences from foreign currency loans (USD 40 million) of the Unitex project. STK will pay stock dividends at a rate of 45% for 2023 and 2024 in 2025.

The outlook for 2025 is assessed to be more positive than for 2024 thanks to the following factors: (1) Unitex Phase 1 factory coming into operation in Q2/2025, increasing the total design capacity to 99,300 tons/year, (2) Potential for new products with high added value, environmentally friendly and integrated with special functions such as cool feel, anti-UV, anti-static, etc. to be launched in Q2,3/2025, (3) The 2026 World Cup event promotes recovery in yarn demand in Q2,3/2025.