STGT: Make Hay while the Sun Shines

Since Sri Trang Gloves (Thailand) Public Company Limited (STGT) has been listed on the stock market, soon after it became one of the best-performing stocks of 2020, especially when the Covid-19 pandemic was at its peak.

 

With the growth trend and liquidity of STGT, the share was included in MSCI indexes, gaining an interest from foreign investors and institutional investors across the world.  

 

As a consequence, the Board of Directors has approved 3 solutions…1) the change of par value from THB 1 per share to be THB 0.5 per share, resulting in the Company’s share will be increased from 1,434,780,000.00 shares to 2,857,560,000.00 shares, leading to a decline in share price from almost THB 100, which will help individual investors easily reachable to the share, won’t be monopolized by major and institutional investors as before.

 

2) Approved the interim dividend payment at a rate of THB 1.25 per share equivalent to a 1.66% yield from yesterday (Nov 16) closed price at THB 75.00 per share. 

 

Lastly, approved to explore a secondary listing of STGT by way of introduction on the Mainboard of the Singapore Exchange Limited (SGX), which  plans to complete the Proposed Listing by the second quarter of 2022. Listing on the Singapore market will reinforce STGT’s market position in the region. It is expected that the coming Board of Directors’ meeting on December 25, 2020 will greenlight the said issue.  

 

In 3Q20, STGT reported a robust net profit of THB 4,401.9 million, increasing 4,113.6% from a profit of THB 104.5 million, while the revenue was THB 8,142.1 million, increasing 169.9% from THB 3,016.3 million a year ago, which mainly driven by an increase in average selling price (ASP) to THB 1,140 (USD 36.3) following a strong demand and purchasing power from over the world during the pandemic, particularly the USA and Europe.

 

The profit for the nine-month period jumped to THB 5,880.58 million from THB 453.25 million a year ago.

 

On the other hand, if the coronavirus vaccine succeeds, it will minimize STGT’s interests.