Sri Trang Gloves Financial Analysis: Net Profit Growth and Investment Recommendations

Business Description

Sri Trang Gloves (Thailand) Public Company Limited is primarily engaged in the production and distribution of rubber gloves. The company operates in two main business segments: the Gloves segment, which is the core business, and the Others segment, which includes other related businesses. The company has a significant presence in the international market, exporting products across various regions.

Industry Position

Sri Trang Gloves is a key player within the rubber gloves industry, competing with other major manufacturers such as Top Glove and Hartalega. The company appears to have a competitive edge due to its extensive supply chain and significant market share in international markets.

Revenue Streams, Customer Base, and Competitive Advantage

The company generates revenue primarily from the sale of rubber gloves, with additional income from other related services. It has a diverse customer base spread across different geographical regions. Sri Trang Gloves’ competitive advantage lies in its integrated supply chain and large-scale production capabilities.

Financial Statements Analysis

Income Statement

For the nine-month period ended 30 September 2024, the company reported revenues of Baht 18,229 million, an increase from Baht 14,359 million in the same period of 2023. However, the net profit for the period was Baht 438.6 million, up from Baht 194.96 million in 2023, indicating a significant improvement in profitability [[6]][[8]].

Balance Sheet

As of 30 September 2024, the company had total assets of Baht 46,837 million and total liabilities of Baht 10,130 million, showing a strong asset base. The shareholders’ equity stood at Baht 36,707 million, reflecting a robust financial position [[3]][[5]][[6]].

Cash Flow Statement

Net cash flows provided by operating activities were Baht 1,076 million, while net cash flows used in investing activities were Baht 2,079 million. The company also paid dividends amounting to Baht 1,432.59 million during the period [[14]][[16]].

Dividends

The company declared a dividend of Baht 0.50 per share, totaling Baht 1,432.59 million, which was paid in May 2024 [[34]].

Key Findings

• Revenue Growth: The company reported a significant increase in revenues for the nine-month period ended 30 September 2024.
• Profitability: Net profit increased substantially from Baht 194.96 million in 2023 to Baht 438.6 million in 2024.
• Dividend Payment: A dividend of Baht 0.50 per share was declared and paid in May 2024.
• Strong Financial Position: The balance sheet indicates a strong asset base and healthy shareholders’ equity.

Special Actions

The company is focusing on expanding its market presence and improving operational efficiencies to enhance profitability further.

Recommendations

For Current Stockholders

Hold: Considering the significant revenue growth and improved profitability, it is recommended to hold the current position in the stock. The company’s strong financial health and dividend payment are positive indicators for continued stability and potential growth.

For Potential Investors

Buy: If you are not currently holding the stock, it is recommended to consider buying, given the company’s positive financial performance and strong market position.

Disclaimer

The recommendations provided are based on the financial data available as of 30 September 2024, and the analysis of Sri Trang Gloves’ performance. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.