Analysts See Rubber Gloves’ Momentum to Continue, Expecting STGT Earnings of ฿10Bn in 1Q
Analysts See Rubber Gloves’ Momentum to Continue, Expecting STGT Earnings of ฿10Bn in 1Q
Analysts See Rubber Gloves’ Momentum to Continue, Expecting STGT Earnings of ฿10Bn in 1Q
7 เม.ย. 2564

Miss Jarinya Jirojkul, Chief Executive Officer of Sri Trang Gloves (Thailand) Public Company Limited (STGT), revealed that the company has invited the securities companies to see the construction progress of the rubber glove plant (SR) in Surat Thani to give investors confidence that production capacity expansion will go as planned. STGT targeted to increase production capacity to 100,000 million pieces per year by 2026.
 
Regarding the Surat Thani 2 plant (SR2), Miss Jarinya said that the production will be resumed in May after being damaged by the fire incident in February, while the SR3, which is currently under construction, is expected to start manufacturing within 2Q21. 
 
STGT also has another 2 plants under construction as of now in Songkhla and Trang, which are planned to commence the production in 3Q21 and 4Q21, respectively. The two new plants would boost up the company’s annual production capacity from 33,000 million pieces to 36,000 million pieces, and by 2026, STGT aimed to raise natural rubber and nitrile rubber gloves production capacity to 100,000 pieces a year. 
 
KTBST Securities has given a “BUY” recommendation on STGT and a target price of ฿58.00/share, expecting 2021 earnings of 35,582 million baht (+147% YoY) as the selling price of rubber gloves is on upward trend throughout the first half of this year. KTBST also saw that U.S.’s ban on Malaysia’s Top Glove Corp. over forced labor will benefit STGT. 
 
Trinity Securities also rates “BUY” on STGT with a target price of ฿54.00/share, forecasting earnings in 1Q21 to grow 2,300% YoY to 10,000 million baht as the selling price would continue at the same rate in the second half of this year.  