STGT revealed that the pre-order for its rubber gloves was fully booked until 2023, which is expecting to consequently support its revenue and profit to make a new high in 2021.
Ms. Jarinya Jirojkul, Chief Executive Officer of Sri Trang Gloves (Thailand) Public Company Limited (STGT), stated that the company is expecting its 4Q20 revenue and net profit to make a new high, compared to the previous quarter, which would be STGT’s fourth consecutive record-breaking in QoQ.
The increase in 4Q20 would be from its higher selling prices more than 50%, while its selling volume would remain relatively close to the previous quarter, which is around 7,200 million pieces per quarter, as the company has yet to make any expansion for its production capacity.
As of the end of November 2020, the order for STGT’s natural rubber (NR) glove is fully booked until March 2022, while the order for nitrile rubber (NBR) glove is fully booked until June 2023. The selling price will be determined and announced around two months prior to the shipping date.
Due to an overwhelming confirmed pre-order, STGT expected its revenue and profit in 2021 to come out higher than 2020 with an increase of sales volume by 15%, which would be more than 28,000 million pieces due to higher demand in rubber gloves. More importantly, the company expected that the demand would not decline even with the availability of coronavirus vaccines, based on its backlog and an expansion of STGT’s production capacity, resulting in a total production of 39,000 million pieces per year. The selling prices are expected to be relevant to 2020.