The share price of Sri Trang Gloves (Thailand) Public Company Limited (STGT) rose ฿2.00/share or 2.84% to trade at ฿72.50/share with a trading value of 789 million baht as of 15:15 local time in Thailand.
STGT slowly recovered from a slump over the past two weeks as the world cheered on a potential coronavirus vaccine that proved over 90% effective, developed by Pfizer and Moderna, as well as the German’s BioNTech.
Despite the plummet, STGT is considerably a good fundamental stock with potential growth that MSCI included the stock into its Global Standard Index, which would come into effect as of the closing of November 30, 2020. Meanwhile, STGT is expected to be included in FTSE All World as well. The announcement will be announced later today.
Capital Nomura Securities (CNS) upgraded its target price for STGT from ฿89.00/share to ฿140/share, maintaining a “BUY” recommendation, as the net profit in 3Q20 which reported at 4,402 million baht was better than the market’s forecasts by 31-88%. Its net profit rose 3459% YoY and 316% QoQ due to higher average selling price by 89% YoY and 73% QoQ.
CNS expected STGT to report a net profit for 4Q at 5,227 million baht as the security company projected the selling prices could edge higher by 20% compared to the previous quarter. Moreover, STGT would have a backlog to recognize until at least 1Q22.