Century Synthetic Fiber, listed on the Ho Chi Minh Stock Exchange under the ticker STK, is a leading textile company in Vietnam specializing in the production and distribution of high-quality polyester yarns.
In the first half of 2024, STK’s revenue declined by 18.2 percent year-over-year to US$23 million due to lower sales. In response, STK stopped a number of machines and instead focused on reducing excess inventory. The company also recorded a net loss of US$2.2 million reportedly due to a surge in financial expenses, the result of unrealized exchange rate losses of US$1.7 million on a US dollar-denominated loan used to invest in a new factory.
Said factory will have a capacity of 60,000 tons a year, and when put into operation, increasing Century Fiber’s total production capacity to 99,000 tons a year. This plant is expected to be operational this month.
STK’s challenges contrast with broader growth in Vietnamese yarn exports, which reached US$2.9 billion in the first eight months of 2024, a 1.4 percent increase year over year.
Of note, direct export revenue accounts for 36.6 percent of STK’s sales revenue.
Disclosure: The author does not have any financial interest in STK stock.
See also: Vietnam Garment Manufacturing 2024: Ultimate Guide