TRIS Rating on Monday upgrades the company rating on Sri Trang Gloves (Thailand) Public Company Limited (SET: STGT) to A from A-, with a stable outlook. The upgrade follows the same rating action on Sri Trang Agro-Industry Plc. (SET: STA) as STGT is a core subsidiary of STA (rated A/Stable by TRIS Rating).
TRIS Ratings assessment of STGTs stand-alone credit profile (SACP) remains at a level. The SACP continues to reflect the strong financial performance of STGT in 2021, in line with TRIS Ratings projections, as well as its position as a leading global manufacturer of rubber gloves with a diversified customer base, and its strong financial profile. However, STGTs business profile is constrained by the cyclical and volatile nature of raw material prices, fluctuations in selling prices of rubber glove products and foreign exchange rates, and intense competition among major industry players.
The share price of STGT today (May 23) closed 4% higher amid the spread of the Monkeypox outbreak in many countries across the world.
STGT’s stock gained THB0.70/share, or 3.63% to THB20.00/share, with a trading value of THB329 million.
Kasikorn Securities (KS) stated in its analysis that the spread of the Monkeypox outbreak in multiple countries has increased the demand for rubber gloves; and hence, equities related to gloves production are expected to benefit from this matter, such as Malaysia’s Top Glove (+3.4% DoD) and Superman (+3% DoD), as well as STGT.
