STK – Update – 20181015

• For 9M2018, STK enjoyed a healthy 19% rise in ASP from the beginning of the year due to the recovery of global yarn prices along with the shift towards high-end recycled yarn.
• We raise our FY18 forecasted EAT by 22.0% to reach VND166bn (+65.8% yoy)
• We raise our target price by 4.7% to VND28,800/ share, with a lower target P/E of 11.5x due to rising risk aversion on the back of trade tensions and higher US bond yields more than compensated for by a revised EPS of VND2,495 (+22.0% vs previous forecast)

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