The share price of Sri Trang Gloves (Thailand) Public Company Limited (STGT) rose ฿1.50/share or 3.77% to ฿41.25/share with a trading value of 2,180 million baht as of 15:40 local time in Thailand. The highest price was ฿42.00/share and the lowest was ฿41.00/share.
Maybank Kim Eng has given a “BUY” recommendation on STGT with an upgraded target price by 3% to ฿50.00/share in anticipation that the 4Q20 profit might beat its forecasts of 6.1 billion baht.
Maybank stated that SET correction this time could put STGT in the spotlight as 4Q20 profit tends to generate a positive surprise after the Ministry of Commerce reported a strong export growth in December. The closing price on Friday implies this year’s dividend yield of 11.0%. Plus, the company plans to pay dividends three times this year (no more waiting).
The American Rescue Plan is a positive sign for the rubber glove industry. In addition, Maybank reiterated BUY recommendation and adjusted our 2021 target price slightly by 3% to THB50.00 / share.