STK [OUTPERFORM +15.4%] - Clear signs of recovery in orders in H2 2024 - Update
  • 2024-07-25T00:00:00
  • Company Research

- We lower our target price (TP) for STK by 15% to VND32,200/share and downgrade our rating from BUY to OUTPERFORM. Our lower TP is due to a 14% decrease in our aggregate NPAT-MI forecast for 2024-28F.

-  We cut our NPAT-MI forecast for 2024F by 65% as H1 2024 results trailed our expectations. In H1 2024, STK suffered a loss of VND55bn, impacted by 1) lower selling prices to attract orders amid rising input PET chip prices, 2) shutting down some production machinery due to lower-than-expected demand, and 3) accumulating VND66bn of FX losses as the USD/VND appreciated 5% during H1 2024.

- We expect the earnings outlook in H2 2024 to be better compared to H1 2024 as (1) STK's Q2 2024 orders showed clear signs of recovery, (2) new capacity from the Unitex factory launching in Q3 2024, and (3) we expect the USD/VND rate to be more stable during H2 2024.

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