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. 1H2025 STK recorded net revenue of VND710 billion (+25% YoY), NPAT-Mi reached VND29 billion (+153% YoY), respectively completing 21% and 9% of the yearly plan. We assess that although this result achieved growth, it does not reflect a clear improvement in business performance because this growth is based on the low base of 2024 and has not yet returned to the average profit level of the last 5 years.

At the same time, we assess that STK's business activities in the second half of 2025 will face many difficulties when: (1) Demand for apparel consumption is forecast to slow down due to the impact of tax policies; (2) Exchange rate fluctuations put pressure on foreign currency loans; (3) Unitex Phase 1 factory comes into operation later than expected. Based on the DCF method, we update STK's target price at VND26,211; 11% lower than the latest report based on: (1) The delay of the key Unitex project lower expectations on the ability to contribute to revenue and profit in 2025; (2) Demand for apparel is expected to stagnate in the context of unclear US tax policy; (3) Financial costs are higher than expected due to the impact of exchange rates