STGT Gains 3% after Reporting a Robust 2Q21 Earnings of ฿7.28Bn, Up over 500%

The share price of Sri Trang Gloves (Thailand) Public Company Limited (STGT) rose ฿1.00/share or 2.68% to ฿38.25/share as of 11:28 local time in Thailand, with a trading value of 697 million baht.

STGT has announced its 2Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

STGT reported a 2Q21 net profit of THB 7,280.1 million, growing 589% YoY but decreasing 27.6% QoQ, with a net profit margin of 56.1% as the company was confronted with challenges from the COVID-19 outbreak at the Trang and Surat Thani plants, which forced STGT to suspend production at the 2 plants for 8 – 19 days in late May and June, a move that had a direct impact on the production volumes. 

The global container shortage and shipping congestion that persisted also meant that the company was unable to ship out products as planned. As a result, sales volume declined 22.6% YoY and 14.9% QoQ to 5,713 million pieces. However, with the average selling price (ASP) still at a high level, the company had THB 12,967.7 million in revenue in 2Q21, growing 164.7% YoY but decreasing 16.0% QoQ. 

Meanwhile, a net profit for the first six months of 2021 was 17,331.67 million baht, an increase of 1,072%, from a net profit of 1,478 million baht in the same period of last year.

In addition, the Board of Directors of STGT has approved a quarterly dividend of THB 1.25 per share, to be paid on September 7, 2021, with an Ex-dividend date on August 23, 2021, and another dividend of not less than THB 1.25 per share to be paid in December after the approval of 3Q21 financial results.