🟩STK Q2/2023 has exceeded VND expectations, when VND only expects STK business results to increase by 15% compared to Q1/2023.
🟩VCSC increased target price by 37%.
Buy recommendation for STK . stock
Vietcap Securities Company (VCSC)
🟩We upgrade our recommendation from positive to buy and raise our target price by 37% for Century Yarn JSC (STK) as we raise our forecast for after-tax profit by 44%/39% for 2024/2025, Partially affected by a 6% decline in its FY23 NPAT forecast due to forecast higher selling & administrative expenses (SG&A) and interest rates.
🟩We raise our sales forecast for the period after 2023 due to the expectation that STK will benefit from the shift of yarn and fabric orders from China to Vietnam as announced early to STK and manufacturers domestic.
🟩STK expects business results in the third quarter of 2023 to be similar to the second quarter of 2023, and the company also expects business results to recover significantly in the fourth quarter of 2023 and 2024. Although customers STK's brand forecasts strong sales growth, but efforts to clear inventory by sportswear brands have been slower than the industry as a whole, prolonging STK's recovery process.
🟩VCSC increased target price by 37%.
Buy recommendation for STK . stock
Vietcap Securities Company (VCSC)
🟩We upgrade our recommendation from positive to buy and raise our target price by 37% for Century Yarn JSC (STK) as we raise our forecast for after-tax profit by 44%/39% for 2024/2025, Partially affected by a 6% decline in its FY23 NPAT forecast due to forecast higher selling & administrative expenses (SG&A) and interest rates.
🟩We raise our sales forecast for the period after 2023 due to the expectation that STK will benefit from the shift of yarn and fabric orders from China to Vietnam as announced early to STK and manufacturers domestic.
🟩STK expects business results in the third quarter of 2023 to be similar to the second quarter of 2023, and the company also expects business results to recover significantly in the fourth quarter of 2023 and 2024. Although customers STK's brand forecasts strong sales growth, but efforts to clear inventory by sportswear brands have been slower than the industry as a whole, prolonging STK's recovery process.
