STA shares climbed 3.23% to 19.20 baht after analysts forecast third-quarter 2026 profit to remain strong and set a target price of 22 baht per share. Finansia Syrus Securities said STA reported second-quarter 2026 net profit of 895 million baht, up 38.7% from the previous quarter and 197% from a year earlier, with core profit at 1.15 billion baht, the highest in 17 quarters and above the research team's estimate of 763 million baht. Overall gross margin came in at 12%, above the 10.3% forecast, as the rubber glove business saw its margin rise to 17% from 10.4% on higher selling prices, while the natural rubber business posted a margin of 9.3%, up from 8.7% in the previous quarter. Finansia Syrus expects second-half 2026 profit may soften from the second quarter of 2026 due to lower rubber glove selling prices and weaker SICOM rubber prices at around 210 to 220 US cents per kilogram, but still expects third-quarter 2026 profit to remain at a good level, with a chance for SICOM rubber prices to rebound above 230 US cents per kilogram in the fourth quarter of 2026 if hot weather from the El Niño phenomenon materialises and the EUDR regulation is not postponed. STA also announced a dividend for the first six months of 2026 at 0.50 baht per share, representing a yield of 2.7%.
Sri Trang Agro-Industry Public Company LimitedStrong Q2 profit beat and dividend announcement boost expectations, with broker target at 22 baht.
