Shares of Sri Trang Gloves Thailand (STGT), one of the world’s leading rubber glove producers, surged to a five-month high due to strong global demand and a new wave of coronavirus infections in Thailand. The share price for STGT rose by 5.36 per cent to 44.25 baht on Wednesday
STGT was the most traded stock on the day with a transaction value of over 3.4 billion baht despite a downward market trend. STGT’s parent company Sri Trang Argo (STA) also rose 2.13 per cent to 48 baht.
Analyst say that the company’s profit margin will continue to be healthy as the demand for rubber gloves remains high.
For the full-year performance, Asia Plus Securities maintains a strong outlook for the stock with a forecast of 24.8 billion baht net profit, up 72.5 per cent year-on-year, while KTB Securities forecasts higher earnings of 35.6 billion baht, jumping 147 per cent year-on-year.
The positive factors for STGT are an increase in rubber glove price around 38.6 per cent from the previous year due to the product shortage.