STA Down 6% as Rubber Gloves Price Is on Downtrend
Analyst forecasts STA will earn a net profit of 3,714 million baht in 3Q21, but sales volume is expected to fall short of the target as COVID-19 pandemic improves globally
The share price of Sri Trang Agro-Industry Public Company Limited (STA) dropped ฿2.00/share or 5.63% to ฿33.50/share as of 12:03 local time in Thailand, with a trading value of 478 million baht.
Asia Wealth Securities (AWS) forecasts STA will earn a net profit of 3,714 million baht in 3Q21 (+78% YoY, -26% QoQ) and total revenue of 30,022 million baht (+82% YoY, +1% QoQ), as the natural rubber business expanded YoY due to the automotive industry’s recovery from the COVID-19 pandemic and sales volume has consistently increased quarterly.
Also, the rubber gloves business increased year over year but decreased quarter over quarter. Sales volume is expected to reach 7,300 million baht (+3% YoY, +28% QoQ) in 3Q21, but will fall short of the target of 8,100 million pieces due to the global container shortage.
However, AWS anticipated a potential subside in rubber glove selling prices in 4Q21, but at a lower pace due to container shortages and the COVID-19 pandemic improving globally. As a result, rubber glove sales would fall short of the target this year. Currently, the price of rubber gloves in US dollars has decreased by 30% QoQ.
