STGT receives stand-alone A credit rating, reinforcing its business and financial strength

Sri Trang Gloves (Thailand) Public Company Limited or STGT is pleased to have received the A rating on a stand-alone basis by TRIS Rating. The rating, which surpasses its parent company’s rating of A-, demonstrates STGT’s strong operating performance, working capital, and financial profile. Global demand for latex gloves, meanwhile, continues to grow with demand expected to reach 420 billion pieces this year, increasing 15% annually since 2018.

Ms. Jarinya Jirojkul, Chief Executive Officer of Sri Trang Gloves (Thailand) Pcl. or STGT, a major global producer of latex and nitrile gloves, discloses that TRIS Rating, Thailand’s leading credit rating agency, on June 15, 2021, announced its assignment of A rating to the company, an upgrade of the A- rating it has assigned to Sri Trang Agro-Industry Pcl. or STA, STGT’s parent company and largest shareholder.

While a subsidiary would normally not receive a higher rating than its parent, TRIS has assigned a higher rating to STGT based on its stand-alone credit profile, on the strength of the company’s operating performance, working capital, and financial profile following its listing on the Stock Exchange of Thailand last year.

In 2020 the company had a record 30,405 million baht in revenue and 14,401 million baht in net profit. The company continued its record-making streak in Q1 of this year, with 15,433.7 million baht in revenue, increasing by 308.8% over the same period of last year. Meanwhile, net profit shot up to 10,051.6 million baht, increasing by 2,245% over the same period of last year, with a gross profit margin of 74%, compared with 55.3% in 2020.

All of this reinforces the status of STGT as the world’s leading and Thailand’s largest glove producer, with plans to expand production capacity to 36 billion pieces this year and to 100 billion pieces by 2026. This is in response to the global demand that continues to grow and has shown no signs of slowing down. The Malaysian Rubber Glove Manufacturers Association (MARGMA) has projected demand for latex gloves around the world to be 420 billion pieces 2021. Since 2018, when global demand reached 212 billion pieces, consumption has grown on average of 15% per year, fueled by medical uses in countries such as the United States and European countries. Demand is expected to continue its growth trajectory until at least Q2 of 2022.