STK – Brief – [NONRATED] – 1Q25: Earnings rebound from the low base

In 1Q25, STK’s revenue posted to VND376bn (+41.6% yoy/ +12.7% qoq), of which, virgin yarn: VND187bn (+17.8% yoy/ +7.9% qoq) and recycled yarn: VND189bn (+77.3% yoy/ +17.9% qoq). Gross margin hit all high time thanks to (i) The price gap (yarn ASPs – PET chip costs) of virgin and recycled yarns widened, and (ii) The sales volume revived strongly in 1Q25, hence utilizing capacity, in turn lowering the costs per finished yarns. 1Q25’s NPAT posed to VND36bn, strongly recovered from the low base yoy and the losses of VND14bn in 4Q24.