Sri Trang Group's Rating Upgraded to "A with Stable Outlook" by TRIS Rating on the strength of operations
Sri Trang Group’s credit rating has been upgraded by TRIS Rating to “A with Stable Outlook” (from previously “A- with Positive Outlook”) on the strength of its operations and finances as it aims to increase sales and market share globally.
Mr. Veerasith Sinchareonkul, Chief Executive Officer and Executive Director of Sri Trang Agro-Industry Public Company Limited (STA), reveals that TRIS Rating has upgraded Sri Trang Group’s corporate and debenture credit ratings from “A- with Positive Outlook” to “A with Stable Outlook”. He says this testifies to the operational strength of the Group, which consists of Sri Trang Agro-Industry Public Company Limited (STA) and Sri Trang Gloves (Thailand) Public Company Limited (STGT), and serves to bolster investors’ and shareholders’ confidence in the Group.
The upgrade of corporate and debenture ratings underlines the overall strength of the natural rubber industry and the glove industry and illustrates Sri Trang Group’s operational strength and competitiveness, effective risk management, strong finances, and debt repayment capacity.
Meanwhile, Sri Trang Group has demonstrated a strong performance as sales volume continues to increase. In Q1/2022, Sri Trang Agro-Industry Plc. had THB 28 billion in revenue and a net profit of THB 1.51 billion. Sales volume of natural rubber products rose 7% over the same period of the previous year and 1% over the preceding quarter to 349,000 tons, a higher increase than the overall industry growth. During the same period, Sri Trang Gloves (Thailand) Plc. recorded THB 7.12 billion in revenue and a net profit of THB 1.05 billion. Sales volume also increased 18% over the same period of the previous year and 4% over the preceding quarter, reflecting the ability of STGT to expand into new markets, develop new products to increase sales and adjust production lines to focus on higher-margin products as the global demand for gloves remains robust.
“Sri Trang Group is pleased with TRIS Rating’s upgrade of our corporate and debenture credit ratings. We are determined to keep increasing our sales and market share in both the natural rubber industry and the glove industry to improve our performance and deliver higher returns to our shareholders,” Mr. Veerasith says.