The dual-listed group says it is working to ensure that operations continue with minimal business impact

 

 

[SINGAPORE] Sri Trang Gloves said on Tuesday (Nov 25) that its manufacturing facilities in flood-affected areas in Thailand&rsquo s southern trading hub Hat Yai have temporarily suspended production. 

 

The mainboard-listed company said flooding in the Hat Yai district of the Songkhla province since Sunday has caused water to overflow into some operation areas as well as prevented employees from commuting to work. 

 

However, its other facilities located outside the flood-hit areas have continued to operate as per normal, said the company, which is listed on the Singapore Exchange and the Stock Exchange of Thailand. 

 

&ldquo The company is closely monitoring and assessing the situation to ensure the highest level of safety (for) its business and the well-being of employees and surrounded communities,&rdquo said Sri Trang Gloves. 

 

It said it has a business continuity plan for flood-related incidents, and it is currently working to ensure that operations can continue with minimal business impact. 

 

Severe flooding in southern Thailand from days of intense rain has affected 10 provinces in the country and eight states in neighbouring Malaysia, forcing thousands to evacuate and killing at least eight people. 

 

In particular, the Hat Yai district was hit with its heaviest rainfall in a single day in more than 300 years on Friday, according to Thailand&rsquo s irrigation department.    

 

Authorities said the eight deaths in Thailand were due to electrocution and other flood-related accidents. 

Revenue for the quarter is down 31.8% year on year

[SINGAPORE]   Sri Trang Agro-Industry   : NC2 0% fell into the red with a net loss of 841.9 million baht (S$33.8 million) for the third quarter ended Sep 30, reversing from a net profit of 517.3 million baht for the corresponding period a year earlier. 

 

This came amid lower revenue, said the Thailand-based, Singapore-listed rubber group in a bourse filing on Friday (Nov 7).

 

Revenue for Q3 fell 31.8 per cent year on year to 21.6 billion baht, from 31.6 billion baht previously. Sri Trang Agro-Industry said this was due to lower average selling prices of its products and weighed down by prolonged uncertainty over US tariffs.

 

Revenue from the group&rsquo s natural rubber business &ndash which made up 71.8 per cent of total revenue &ndash fell 37.7 per cent year on year to 15.5 billion baht. This was attributed mainly to lower sales volumes and average selling prices.

 

Sri Trang Agro-Industry said that, by geography, China remained its largest market for natural rubber, accounting for 50.7 per cent of total revenue.

 

This was followed by Thailand (20.4 per cent), other Asian countries (12.3 per cent), Europe (8.8 per cent), the Americas (7.5 per cent) and other markets (0.3 per cent).

 

As for its glove business &ndash which contributed 28.1 per cent of total revenue &ndash Sri Trang Agro-Industry posted a 5.1 per cent year-on-year decline in Q3 revenue to 6.1 billion baht.

 

Despite a &ldquo 10.7 per cent rise in sales volume, supported by the return of orders from customers who had previously postponed purchases&rdquo , the group noted that the average selling price of its gloves fell 7.6 per cent quarter on quarter to 598 baht per 1,000 pieces.

 

This, it added, reflected &ldquo continued intense competition in the industry (and) the appreciation of the Thai baht against the US dollar&rdquo .

 

Sri Trang Agro-Industry&rsquo s loss per share stood at 0.55 baht for Q3 FY2025, from earnings per share of 0.34 baht a year earlier.

 

The group said the US&rsquo reciprocal tariffs have &ldquo continued to create uncertainty in the global market, prompting buyers to adopt a more cautious approach and delay new orders&rdquo .

 

It added that the decline in global rubber prices since the previous quarter has continued to weigh on its performance.

 

Nevertheless, Sri Trang Agro-Industry said it has remained resilient, pointing to its &ldquo strong operating cash flow&rdquo , as well as its earnings before interest, taxes, depreciation and amortisation of 449.4 million baht. The group added that it maintained a &ldquo solid financial position&rdquo , with a net debt-to-equity ratio of 0.6.

Profitability eroded by bigger rise in cost of sales and net foreign exchange loss

 

[SINGAPORE] Sri Trang Agro-Industry : NC2 -3.57% swung to a net loss of 786.8 million baht (S$31.3 million) for the second quarter ended June, from earnings of 628.4 million baht in the year-ago period, as profitability was eroded by a bigger rise in cost of sales and net foreign exchange loss.

 

The Thailand-based, Singapore-listed rubber group posted a 19.4 per cent rise in revenue to 30.8 billion baht, supported by higher average selling prices and increased sales volume.

 

Revenue from natural rubber was 24.9 billion baht (up 23.6 per cent), accounting for 80.6 per cent of total revenue. The sales volume of rubber was up 20.7 per cent year on year at 397,461 tonnes &ndash the seventh straight quarter of increase.

 

China remained Sri Trang Agro-Industry&rsquo s largest rubber market, contributing 66.4 per cent to the revenue, with Thailand at a distant second at 12.6 per cent.

 

Revenue from the glove segment was six billion baht (up 5.4 per cent), contributing to 19.4 per cent of the revenue.

 

However, overall cost of sales rose by 30 per cent &ndash a bigger percentage than the the growth in revenue &ndash to 29.5 billion baht, resulting in gross profit being more than halved.

 

Sri Trang Agro-Industry was also hit by negative foreign exchange movement and recorded 171.4 million baht in net foreign exchange loss, compared with 21.1 million baht in gain during the corresponding period in the previous year.

 

Hence, loss per share stood at 0.51 baht, against earnings per share of 0.41 baht for the year-ago period.

 

The company delivered a net loss of 98.1 million baht for the half-year, against a net profit of 298.7 million baht in the corresponding period in the 2024 financial year.

 

Revenue for the recent six months was up 31.8 per cent at 65.2 billion baht, while cost of sales surged 36.5 per cent to 60.7 billion baht.

[SINGAPORE] Rubber group Sri Trang Agro-Industry posted a net profit of 688.7 million baht (S$27 million) in the first quarter ended Mar 31. 

 

This was a reversal from the net loss of 329.7 million baht in Q1 the year before, when El Nino had a significant impact on the group&rsquo s operations, Sri Trang Agro-Industry said on Tuesday (May 13). 

 

Revenue rose to 34.4 billion baht in Q1, 45.2 per cent higher than the 23.7 billion baht recorded in the year-ago period, on the back of higher sales of natural rubber. 

 

For the past two to three years, the group has been implementing its expansion plans, particularly for block rubber, Sri Trang Agro-Industry said.

 

It said: &ldquo As a result, our production capacity increased from 2.82 million tonnes at the end of FY2021 to 3.72 million tonnes at the end of Q1 2025, achieving over 90 per cent of our targeted 4 million tonnes by 2026. We will continue to increasingly utilise more of our newly installed capacity.&rdquo  

 

Earnings per share stood at 0.45 baht for the first three months of the year, a turnaround from the loss per share of 0.21 baht in the year-ago period.

 

SHANGHAI Stock Exchange-listed China Hainan Rubber Industry Group is acquiring 574.2 million shares in Halcyon Agri Corporation : 5VJ 0% at US$0.315 apiece, for a total cash consideration of US$180.9 million.

 

The Shanghai stock exchange-listed company made the announcement on Wednesday (Nov 16).

 

This represents a 36 per cent stake in Halcyon Agri, triggering a mandatory conditional cash offer for all the shares in the Singapore-listed company as the acquisition will result in Hainan Rubber owning more than 30 per cent of Halcyon Agri.

 

The offer price of US$0.315 is 50.3 per cent above the last transacted price of S$0.29 for Halcyon Agri on Nov 11 &ndash the last full trading day before the announcement.

 

It is also 73.3 per cent higher than the volume-weighted average price (VWAP) of Halcyon Agri for the 1-month period up to Nov 11, and at a 78 per cent premium to the three-month VWAP.

 

Hainan Rubber will make a formal offer after its purchase of the 36 per cent stake in Halcyon Agri from Sinochem International is completed and certain pre-conditions are met.

 

Halcyon Agri has requested to lift its trading halt on Nov 16, after the announcement was made.

 

GLOVE maker Sri Trang Gloves Thailand : NC2 0% recorded a net profit of 1.67 billion baht (S$64.8 million) for the first fiscal half ending Jun 30, down 90.4 per cent from the 17.33 billion baht the company posted in the same period a year ago.

 

Earnings per share fell to 0.58 baht for H1 2022, down from 6.07 baht previously.

 

Revenue fell 51.9 per cent to 13.66 billion baht in H1 2022 from 28.4 billion baht previously. For quarter on quarter, revenue tumbled 49.6 per cent to 6.54 billion baht, from 12.97 billion baht recorded previously.

 

In a bourse filing on Wednesday (Aug 10), the company attributed the decline in revenue and profit margins to lower average selling prices (ASPs) resulting from increasing supply in the market.

 

&ldquo Sales volume was 7,627 million pieces, growing 32.6 per cent year on year but decreasing 3.5 per cent quarter on quarter as Covid-19 has been brought under control and demand started to normalise,&rdquo the mainboard-listed company said.

 

Sri Trang gloves added that it is committed to achieving 57 billion pieces in annual installed production capacity by 2024, an adjustment to reflect the current industry climate.

 

&ldquo For FY2022, our annual installed production capacity is expected to reach 48 billion pieces, representing a 19.1 per cent growth from FY2021. Cost-saving initiatives such as the use of automation and technology to achieve economies of scale and improve efficiency to create higher profit and return to shareholders will continue to be in our focus.&rdquo