Finansia Syrus Securities said STA posted a second-quarter net profit of 895 million baht, up 38.7% from the previous quarter and 197% from a year earlier. Core profit came in at 1.15 billion baht, the highest in 17 quarters and above the brokerage's estimate of 763 million baht, supported by a gross margin of 12%, higher than the projected 10.3%. The natural rubber business recorded a margin of 9.3%, while the rubber glove business posted a margin of 17%. Natural rubber selling prices rose 12.4% from the previous quarter, with sales volume of 354,000 tonnes, up 3.6% quarter-on-quarter but down 10.9% year-on-year. For rubber gloves, the selling price was 22.86 dollars per 1,000 pieces, up 17.8% from the previous quarter and 13.8% from a year earlier, the highest in four years, but sales volume fell 6.6% from the previous quarter to 8,551 pieces. Finansia Syrus expects second-half profit to weaken from the second quarter due to lower rubber glove selling prices and a flat to slightly lower natural rubber business, after SICOM rubber prices softened to around 210 to 220 cents per kilogram. However, third-quarter profit is still expected to remain at a good level, and the brokerage will monitor SICOM rubber prices in the fourth quarter, which could climb back above 230 cents per kilogram if El Nino occurs and the EUDR is not postponed. Finansia Syrus is considering raising its full-year profit estimate after first-half core profit reached 1.57 billion baht, up 625.3% from a year earlier and already matching the previous full-year forecast. STA announced a first-half dividend of 0.50 baht per share, representing a yield of 2.7%, and Finansia Syrus set a target price of 22 baht per share.
Sri Trang Agro-Industry Public Company LimitedQ2 net profit up 38.7% QoQ and 197% YoY, core profit beat estimates, and dividend announced.
