Yuan Ta Securities has a positive outlook on Sri Trang Agro-Industry (STA) after an analyst meeting. The company has lowered its 2026 sales volume target from 1.6 million tons to 1.45-1.50 million tons, in line with first-half sales of 700,000 tons, and expects the fourth quarter to be the highest sales quarter of the year. Meanwhile, it has raised its second-half selling price to 215-235 US cents per kilogram, up from the previous full-year average estimate of 190-220 US cents per kilogram. Rubber prices are expected to remain strong due to tight supply, especially in Indonesia, where output could fall 25% in 2026, and an El Niño event would further support prices. For EUDR rubber, there are early positive signs as customers resume orders, with third-quarter sales volume expected to rise about 100% from the previous quarter to 30,000-40,000 tons, and a further 10% growth expected in the fourth quarter. Normalized profit for the third quarter is estimated at around 800 million baht, recovering from a heavy loss in the same period last year but down from the second quarter due to customers delaying orders in anticipation of lower rubber prices. The research house maintains a Buy recommendation with a target price of 25.50 baht, based on 2026-27 PER of 11.3 times and 9.3 times, and a dividend yield of about 6%.
Sri Trang Agro-Industry Public Company LimitedRaised H2 selling price and expects strong rubber prices due to tight supply, with EUDR orders resuming.
