The share price of Sri Trang Gloves (Thailand) Public Company Limited (SET: STGT) plunged to its lowest level on Thursday amid weak market sentiment and downtrend of rubber gloves after the Covid-19 pandemic.
STGT closed the morning session at THB8.35 per share, decreased THB0.35 or 4.02% to its record low.
In 1Q23, the company had revenue of THB 4,581.1 million, decreasing 3.8% QoQ and 35.6% YoY because the ASP continued to decline as supply in the global market has substantially increased while demand has normalized after COVID has been brought under control. Sales volume was 7,287 million pieces, growing 5.7% QoQ but decreasing 7.8% YoY. A focus on NR gloves and a product mix of 81.1% of NR gloves and 18.9% of NBR gloves differentiates us from peers.
STGT recorded a net profit of THB 132.3 million or THB 0.05 per share, with a net profit margin of 2.9%.
STGT once recorded over THB10 billion of net profit in the first quarter of 2021 during the height of Covid-19 as demand for rubber gloves had never been to its highest level at that time. However, demand started to dissipate as the pandemic faded.
Top Glove Corp Bhd recently announced a net loss of RM130.59 million for its third quarter ended May 31, 2023, a huge decline from a net profit of RM15.29 million in the same quarter last year. Revenue fell to RM530.62 million, decreased from RM1.49 billion in the same quarter last year.
The Malaysian glove producer said that it was decommissioning obsolete production lines and temporarily stopping production at 17 out of its 49 factories, due to softer demand.