Analyst Expects STGT to Have Strong Growth in the Remaining of 2021
Phillip Securities foresaw STGT's operations have already peaked in Q1, however expected STGT to have strong growth in the rest of the year.
Phillip Securities foresaw STGT's operations have already peaked in Q1, however expected STGT to have strong growth in the rest of the year.
19 พ.ค. 2564

Experts predict Sri Trang Gloves (Thailand) Public Company Limited (STGT) to see a decline in the effects of lower sales prices on the company’s operations for the rest of the year. Since one of STGT’s main rivals is unable to export to the United States due to concerns about forced labor, the selling price has been reduced. Consequently, sale prices in other areas are falling. Furthermore, both STGT and its rival have increased their production capability, allowing the sale price change to become more noticeable from the end of the second quarter onwards.
 
According to revenue in the first quarter of 2021, sales in the United States accounted for 40% of the company’s overall sales, up from 30% the previous quarter. This seems to be partly due to the competitor’s goods not being able to reach the US market.
 
STGT had a record revenue of 15,433.7 million baht in 1Q21, up 308.8% year on year. Rubber glove sales volume increased as a result of strong global demand despite limited production capacity and raw material supply. As a result, STGT achieved a new high of 10,051.6 million baht in net profit, or 3.52 baht per share.
 
Phillip Securities foresaw STGT’s operations have already peaked in Q1, however expected STGT to have strong growth in the rest of the year when compared to previous year. Furthermore, the current price is trading at 4xP/E, with a dividend yield of about 10% per year. Recommending “BUY” with a new target price of 56.00 baht per share.