More Speculation on STGT after the U.S. Halts Orders of World’s No.1 Gloves Producer!

Maybank Kim Eng expected more speculation in Sri Trang Gloves (Thailand) Public Company Limited (STGT) to come after the U.S. Customs and Border Protection detained orders from a subsidiary of the world’s largest medical glove maker, Top Glove Corp Bhd.

 

On Thursday, the U.S. Customs and Border Protection (CBP) has issued an order to put an importation of Top Glove’s subsidiary on a halt after the company was suspected of using forced labour.

In the morning session, the share price of Top Glove dropped 2.5% and continued to slide in the afternoon session. However, the company had gained over 350% this year.

 

Maybank Kim Eng stated that 18% of STGT’s sales revenue was contributed from an exportation to the U.S. All orders and prices were settled until the fourth quarter of 2021. Maybank estimated that the ban on Top Glove could have an indirect positive sentiment to STGT for speculation. The consensus for STGT was between THB 75-90 per share, while Maybank gave a target price at THB 79 per share.