sri trang gloves (thailand) public company limited · 2020. 9. 15. · 4 stgt’s total installed...
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Sri Trang Gloves (Thailand) Public Company Limited
Opportunity Day
Strictly Private and Confidential
16 September 2020
2
The information contained in our presentation is intended solely for your personal reference only. Please do not circulate this
material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in
reliance upon it. The information may be subject to completion or amendment through the delivery of additional
documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any
security of engage in any transaction. The information contained herein has been obtained from sources that STGT
considers to be reliable; however, STGT makes no representation as to, and accepts no responsibility or liability for, the
accuracy or completeness of the information contained herein. In addition, such information contains projections and
forward-looking statements that reflect our current views with respect to future events, financial performance and result of
STGT’s activities. These views are based on assumptions subject to various risks and uncertainties. No assurance is given
that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ
materially from those projected.
The information contained in this presentation is subject to change without notice and STGT does not undertake any duty to
update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent
required by applicable laws and regulations.
Disclaimer
Section 1: Company Overview
4
STGT’s total installed capacity of 32,619 million pieces
per annum is considered world’s #3 rubber gloves
manufacturer Sri Trang
Holdings
Company
Limited (“STH”)
Dr. Viyavood
Sincharoenkul
Other Sincharoenkul
FamilyOthers
50.7% 3.7% 4.9% 5.1% 30.2%
Rubberland
Products
Company
Limited (“RBL”)
5.4%
SDME
100.0%
STU
100.0%
STA
Group Structure
17,041
million pieces
per annum
5,625
million pieces
per annum
9,953
million pieces
per annum
Latex
Powdered
Examination
Gloves
Latex
Powder –
Free
Examination
Gloves
Nitrile
Powder -
Free
Examination
Gloves
Variation of Products
STGT’s Touch of Life Product Presence: More than 140 Countries in Every Continents
since the Establishment until Present
Our Major Sales are from:
AsiaNorth America
Europe
Australia and Oceania
Middle East
South Africa
South America
as of 02/07/2020
STGT At Glance
5
Business Overview
Leading Rubber Glove Producer in the World with Total Installed Capacity of 32,619 MM Pieces per Year(1)
1 Natural Rubber Glove Business
Natural Rubber Powdered Glove (NRPD)
Natural Rubber Powder-Free Glove (NRPF)
2 Nitrile Glove Business (NBR)
STGT produces and distributes its natural rubber gloves and nitrile gloves
through (1) Original Equipment Manufacturer (“OEM”) and (2) STGT’s own
brands and its subsidiaries’ and STA Group’s brands
Revenue Structure OEM VS Own Brands
Sales Volume and Production
Hat Yai,
Songkhla
Karnchanadid,
Surat Thani
Kantang,
Trang
Installed
Capacity(1)
5,625 mm pieces
per year
Main Raw
Material
Concentrated Latex / Synthetic
Rubber Latex
Product Natural Rubber Powder-Free
Glove / Nitrile Glove
Installed
Capacity(1)
17,041 mm pieces
per year (New Hat Yai plant
has adopted an automation
technology with additional
capacity of 3,629 mm pieces
per year)
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Product Natural Rubber Powdered
Glove / Natural Rubber
Powder-Free Glove /
Nitrile Glove
Hat Yai Plant
Surat Thani Plant
Trang Plant
Installed Capacity(1) 9,953 mm pieces per year
Main Raw Material Concentrated Latex
Product Natural Rubber Powdered Glove
1
2
3
3 Production FacilitiesTotal Installed Capacity of
32,619 mm pieces per year
Note: (1) Installed capacity as of 30 June 2020
NRPD37.8%
NRPF26.9%
NBR35.2%
1H/2020
THB 8,617 mn
based on technical capacity
4,529 5,045 5,513
6,517 7,293
9,134
13,810
4,553 5,003
5,457 6,278
7,381
9,431
13,659
85.2% 89.1% 87.2% 89.6% 95.2%85.5%
92.5%
-50.0%
-30.0%
-10.0%
10.0%
30.0%
50.0%
70.0%
90.0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
Mill
ion p
ieces
Production volume Sales volume Utilization rate (%) based on technical capacity
OEM83.2%
OBM16.8%
1H/2020
THB 8,617 mn
Business Overview
6
Key Drivers in Rubber Glove Demand
Global Rubber Glove Demand
Growth in Healthcare Industry around the World1
The healthcare industry growth is mainly supported by (1) increase in aging
population (2) supportive government policies and access to medical services
(3) increase in Non-communicable Diseases and (4) spread of epidemic and/or
pandemic diseases
Increasing Usage of Hygienic Products in Developing Countries 2
150
100
10 6 4
0
20
40
60
80
100
120
140
160
United States Europe Republic of China India Africa
Source: The Economist Intelligence Unit as of September 2019
Potential growth of rubber glove demand in developing countries is supported by
accelerated economic growth in such countries, increase in awareness in the
importance of hygiene and potential current low rate of rubber glove usage per
capita in such countries
Pieces per Capita
Source: MARGMA Industry Brief 2019 on the Rubber Glove Industry
USD mm %Healthcare Spending in Each Region in 2018 and 2023 Forecasted Rubber Glove Consumption per Capita in
Developed and Developing Countries in 2019
Forecasted Global Rubber Glove Demand during 2016 - 2022
Raw Material Price
Export Concentrated Latex Price and Import Synthetic Rubber
Latex Price during 2014 – June 2020
Source: Rubber Authority of Thailand (RAOT) and Thai Customs
Note: (1) Based on 60.0% Dry Content of Concentrated Latex
(2) Based on 43.5% Dry Content of Synthetic Rubber Latex
Developed Countries
Developing Countries
140.9 372.9 1,761.7 1,874.8
3,632.1
7,981.3
201.6445.0
2,486.82,363.5
4,386.1
10,170.9
7.4
3.6
7.1
4.7 3.8 5.0
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
0
2,000
4,000
6,000
8,000
10,000
12,000
Middle Eastand Africa
LatinAmerica
Asia andAustralia
West Europe NorthAmerica
Global
2018 (LHS) 2023F (LHS) CAGR 2018 - 2023 (RHS)
20
40
60
80
100
120
Ja
n 1
4
Mar
14
May 1
4
Ju
l 1
4
Se
p 1
4
No
v 1
4
Ja
n 1
5
Mar
15
May 1
5
Ju
l 1
5
Se
p 1
5
No
v 1
5
Ja
n 1
6
Mar
16
May 1
6
Ju
l 1
6
Se
p 1
6
No
v 1
6
Ja
n 1
7
Mar
17
May 1
7
Ju
l 1
7
Se
p 1
7
No
v 1
7
Ja
n 1
8
Mar
18
May 1
8
Ju
l 1
8
Se
p 1
8
No
v 1
8
Ja
n 1
9
Mar
19
May 1
9
Ju
l 1
9
Se
p 1
9
No
v 1
9
Ja
n 2
0
Mar
20
May 2
0
TH
B/K
g
Export Concentrated Latex Price Adjusted Concentrated Latex Price
Import Synthetic Rubber Latex Price Adjusted Synthetic Rubber Latex Price (2)
(1)
212 233 268 300360
425489
10%
15%12%
20%18%
15%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
0
200
400
600
800
1000
2016F 2017F 2018F 2019F 2020F 2021F 2022F
Bill
ion p
cs
Glove demand YoY growth
Source: MARGMA and STGT forecast
Industry Overview
7
The Major Shareholder, STA, is the Market Leader in Upstream and Midstream Rubber Business
Worldwide Distribution and Various Sales Channels
Strategic Location for Key Suppliers and Custom Privileges
World-class Rubber Glove Manufacturer with the Prominent Market Position in Natural Rubber Glove and
High Growth Company with a Plan to increase capacity by 115% from the existing capacity within 2026
State of the Art Production Facilities
Advantage from Barrier to Entry
Strong Reputation and Best-in-class Products and Services
Visionary Management with Strong Experience in Glove Industry
1
2
3
4
8
7
5
6
STGT’s Investment Highlights
8
Strategic Location for Key Suppliers and Custom Privileges
• STA Group has been a main supplier of concentrated latex and woodchip
Located in the biggest source of concentrated latex provides
STGT with competitive edge over its competitors
STGT Production Facilities
Security of supply: Access to abundance and continuous supply of concentrated
latex ,where STA Group has an engineering production capacity of concentrated
latex of approximately 46,000 tons per month or equivalent to 50.8% of Thailand's
concentrated latex supply in 2019. STGT’s usage of concentrated latex accounted
for only 20.2% of STA’s production capacity in 1Q/2020
Low transportation and inventory handling costs: STGT’s production facilities
are located next to STA Group’s concentrated latex factories and are located near
sea port
Lower fuel cost: Access to abundance of local woodchip as a main fuel source
comparing to natural gas which is typically used by major competitors in Malaysia
Advantage from lower export tariff to USA over Malaysian and Chinese
Players: Privileges from GSP (Generalized System of Preferences)
No burden on an import tax (CESS) of concentrated latex: STGT, as a
domestic manufacturer, is not subject to concentrated latex import tax
Concentrated Latex Synthetic Rubber Woodchip Chemicals
Key Raw Materials
Hat Yai,
Songkhla
Karnchanadid,
Surat Thani
Kantang,
Trang
Installed
Capacity(1)
5,625 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Installed
Capacity(1)
17,041 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Hat Yai Plant
Surat Thani Plant
Trang Plant
Installed
Capacity(1)
9,953 mm pieces per year
Main Raw
Material
Concentrated Latex
1
2
3
3 Production FacilitiesTotal Installed Capacity of
32,619 mm pieces per year
Note: (1) Installed capacity as of 30 June 2020
Key Investment Highlights
15 15 24 27 33 36
46 54
61 66
8 4
5 3
10
9
7 5
4
15
24 27
33 36
46
54 61
66 70
2017 2018 2019 2Q 20 2021 2022 2023 2024 2025 2026
Installed capacity per year Additional capacity
63.0%
18.0%
10.0%
3.0%6.0%
Malaysia
Thailand
China
Indonesia
Others
9
World-class Rubber Glove Manufacturer with the Prominent Market Position in Natural Rubber Glove and High Growth
Company with a Plan to increase capacity by 115% of the existing capacity within 2026
STGT capacity expansion plan in 2020 - 20261 STGT Actual Production by Product Type2
Estimated Capacity(1) of Top Manufacturers in 20203
With increasing gloves usage from growing global healthcare industry as well as stringent safety standard for maintaining workplace hygiene, rubber
glove business is considered one of the prominent industry with stable growth potential outlook to fulfill increasingly unmet demand.
Estimated Global Rubber Gloves Market Share(2)4
Note: (1) Based on latest annual or quarterly report of each company
(2) MARGMA Industry Brief 2019 on the Rubber Glove Industry
2019 estimated
global demand of
300 bn rubber
gloves p.a.
STGT is the largest
examination glove
manufacturer in Thailand
with glove sales of 19.89
billion pieces in 2019
Unit: Billion Pieces
Unit: Billion Pieces
68% 65% 65% 70% 69% 66% 69%
32% 35% 35% 30% 31% 34% 31%
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
NBR
NR
85
35 33 32 26
Top Glove Hartalega STGT Kossan Supermax
Key Investment Highlights (cont’d)
10
Best-in-Class Technology with Continuous Improvement
• Wide ranges of high-quality rubber gloves and various applications such as healthcare and medical, food
processing, food handling, electronics and aesthetic
• Capability of switching the production between Natural Rubber Powder-Free Gloves and Nitrile Gloves,
providing flexibility to meet client’s demand
• Flexibility to produce 80 types of rubber gloves with more than 11 additional product types under
development
• Comply with various worldwide standards including Medical Application Standard,
Food Processing Standard, Halal Standard and etc.
Expertise in R&D and Non-Stop Innovation
• In-house R&D professionals with extensive experience in developing innovative products
such as high quality lightweight Nitrile Gloves and Natural Rubber Gloves
• Advanced in-house R&D laboratory with lab-scale automation testing under development
Newly Adopted Automation Technology
• At new Hat Yai Factory, STGT has adopted an automation technology and an Internet of Things (IoT) which
help reduce defects and curtail production cost per unit by reducing number of labor by 30% and
increasing productivity by 13%
State of the Art Production Facilities
Key Investment Highlights (cont’d)
1,152 1,155 1,144 1,676
2,129
671 542 622
714
949
500 706 696
651
844
337 410 372
418
468
86 93 130
132
235
83 93 147
131
182
20 17 28
39
49
2,849 3,016 3,138
3,761
4,857
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20
In m
illio
n T
HB
Sales revenue by region
Asia Europe North America Latin America Middle East Africa Australia,Oceania
Revenue Breakdown by Region in 1H/2020
North America
17.4%
Latin America
10.3%
Europe
Asia
Australia and Oceania
44.2%
19.3%
Middle East
4.3%
Africa
3.6%
11
Worldwide Distribution and Various Sales Channels
1.0%
AS 46.6%
AS 27.1%
EU 14.8%
EU 32.8%
US 29.6%
LA12.0%ME 78.6%AF 39.3%AU 25.9%
GrowthQoQ 29.2%
Key Investment Highlights (cont’d)
Various distribution channels to reach
all target customers
Exhibition Selling Agent
Retail Business Online
Capital-Intensive Business in Nature
• Rubber glove business requires significant upfront
investments in high technology machinery as well as well-
equipped production plant
3
12
Advantage from Barrier to Entry
3
Barrier to Entry
Licensing Requirements
• As a medical related products, prior approval from FDA or other
relevant regulatory bodies are required to export and market rubber
examination gloves into any countries
• The average time required for approval can last longer than 6 months
depending on the countries
Incumbent’s Advantages due to Learning Curve and Superior
Production Process
• Experience and expertise of long-standing and large manufacturers
enable them to have flexibility in price adjustment and ability to
encounter higher competitions from new players
Key Investment Highlights (cont’d)
Section 2: Financial Highlights
2Q 20 Financial Highlights
14
Best in Class Workforce Treatment by External Accredited Organization
Strong Balance Sheet from IPO Fund Raising & Debt Repayment
Record Breaking Profits and Profit Margins
All-Time High Sales Volume and Sales Value
Shortest Ever Cash Cycle Days
Longest Lead Time of Shipment from Very High Backlogs
Industry Remains as “Seller Market” With Continual Price Increase
Speed Up New Capacity to Capture Solid Demand Sooner than Planned
1
2
3
4
8
7
5
6
15
(In million THB)
2Q 20 1Q 20 %QoQ
2Q 19
(Restated) %YoY
Volume (in million pcs) 7,380.6 6,278.0 17.6% 4,552.7 62.1%
Sales Revenue 4,856.8 3,760.6 29.2% 2,848.7 70.5%
COGS (3,439.3) (3,053.9) 12.6% (2,456.0) 40.0%
Gross profit 1,417.5 706.6 100.6% 392.7 261.0%
Other income 28.7 18.5 55.4% 27.5 4.4%
SG&A (232.5) (211.8) 9.8% (181.2) 28.3%
Gain (loss) on exchange rate, net (76.6) 94.1 -181.4% (20.4) 276.0%
Other gains, net 85.6 (116.4) NM 44.7 91.4%
Operating profit (loss) 1,222.8 491.0 149.1% 263.4 364.2%
EBITDA 1,490.3 716.2 108.1% 460.3 223.8%
EBIT 1,223.8 491.1 149.2% 264.7 362.3%
Finance income 1.0 0.2 471.3% 1.3 -24.5%
Finance costs (38.5) (39.0) -1.1% (50.5) -23.7%
EBT 1,185.2 452.2 162.1% 214.2 453.4%
Tax (128.4) (30.3) 324.2% (34.4) 273.9%
Net profit 1,056.8 421.9 150.5% 179.8 487.7%
GP margin 29.2% 18.8% 10.4% 13.8% 15.4%
EBITDA margin 30.7% 19.0% 11.6% 16.2% 14.5%
Net profit margin 21.8% 11.2% 10.5% 6.3% 15.4%
Financial Ratio
Current ratio 6.01 1.45 314.1% 1.92 212.8%
Cash cycle (days) 23.42 45.64 -48.7% 67.06 -65.1%
IBD/E 0.21 1.39 -84.8% 1.35 -84.4%
Interest coverage ratio 31.75 12.60 151.9% 5.24 505.8%
ROA 15.4% 12.3% 3.2% 6.2% 9.3%
ROE 20.6% 35.0% -14.4% 17.0% 3.6%
2Q 20 Financial Highlights
4,553 5,003 5,457 6,278
7,381
9,431
13,659 -6.7%
9.9% 9.1% 15.0% 17.6%35.9%
44.8%
-200.0%
-150.0%
-100.0%
-50.0%
0.0%
50.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
In m
illio
n p
cs
1,002 1,080 1,129 1,370 1,889 2,061 3,260 834 776 755
1,065 1,256
1,673
2,321
1,012 1,160 1,254 1,325
1,711 2,105
3,036
2,849 3,016 3,138 3,761
4,857
5,840
8,617 -4.8%
5.9% 4.0%19.8%
29.2% 23.1%
47.6%
-200.0%
-150.0%
-100.0%
-50.0%
0.0%
50.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
In m
illio
n T
HB
NRPD NRPF NBR %Growth
16
Sales Revenue and Sales Growth
Sales Volume and Volume Growth
YoY Growth 70.5%
YoY Growth 62.1%
All Time High Sales Revenue and Volume
1,002 1,080 1,129 1,370 1,889
834 776 755 1,065
1,256 1,012 1,160 1,254
1,325
1,711
2,849 3,016 3,138
3,761
4,857 -4.8%
5.9% 4.0%
19.8%29.2%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20
In m
illio
n T
HB
17
Sales revenue by Products
6M 2019 vs 6M 2020
6M 2020
THB 8,617 mm
6M 2019
THB 5,840 mm
18.0%
29.1%
41.0%
5.7%
4.5%
-2.7%
7.9%
14.6%
-7.0%
8.1%
21.4% 37.9%
NRPD35.3%
NRPF28.6%
NBR36.1%
NRPD37.8%
NRPF26.9%
NBR35.2%
35% 36% 36% 36% 39%
29% 26% 24% 28% 26%
36% 38% 40% 35% 35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20
NBR
NRPF
NRPD
Sales Revenue Breakdown
1,152 1,155 1,144 1,676
2,129
671 542 622
714
949
500 706 696
651
844
337 410 372
418
468
86 93 130
132
235
83 93 147
131
182
20 17
28
39
49
2,849 3,016 3,138
3,761
4,857
0
1,000
2,000
3,000
4,000
5,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20
In m
illio
n T
HB
Sales Revenue Breakdown
18
Sales revenue by Geography
6M 2019 vs 6M 2020
6M 2020
THB 8,617 mm
6M 2019
THB 5,840 mm
Asia44%
Europe19% North America
18%
Latin America10%
Middle East4%Africa
4%
Australia,Oceania1%
Asia40%
Europe24%
North America17%
Latin America11%
Middle East4%Africa
3%
Australia,Oceania1%
40% 38% 36%45% 44%
24%18% 20%
19% 20%
18%23% 22%
17% 17%
12% 14% 12% 11% 10%
3% 3% 4% 3% 5%3% 3% 5% 3% 4%1% 1% 1% 1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20
Australia,Oceania
Africa
Middle East
Latin America
North America
Europe
Asia
49.7% 51.3% 47.1%51.6% 49.7%
49.3%
50.6%
13.8%14.8% 15.4%
14.9%14.2%
14.3%
14.5%
11.2%10.4% 10.0%
10.2%9.6%
10.5%
9.9%
7.5%7.5% 7.0%
7.1%7.6%
7.0%
7.3%
17.7%
16.0% 20.4%
16.2%
18.9%
18.9%
17.6%
2,462 2,688
2,807 3,054
3,439
5,060
6,493
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
In m
illio
n T
HB
Raw Material Utilities Salary & Wages Depreciation & Amortization Others
19
COGS Breakdown
Note: (1) Including 1) concentrated latex, 2) synthetic rubber and 3) chemicals
(2) Including 1) former, 2) packaging and 3) others
(1) (2)
Cost of Goods Sold Remains In Good Shape
269 275 242 251
231 265
241
272 262
272 235
235
272
235
626
603
575
599
658
619 631
541 537
514
486 466
537
475
-
100
200
300
400
500
600
700
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
TH
B
Raw material cost per 1,000 pcs Other COGS per 1,000 pcs ASP (per 1,000 pcs)
Increase of ASP and Healthier Margins
20
Average Selling Price and Costs per 1,000 Pieces
ASP QoQ Growth
9.9%
ASP YoY Growth
1.9%
ASP YoY Growth
5.2%
COS/Kpcs YoY Growth
-13.8%
COS/Kpcs QoQ
Growth -4.2% COS/Kpcs YoY
Growth -11.4%
21
Gross Profit and Gross Profit Margin
393 328 330
707
1,418
789
2,124
13.8% 10.9% 10.5%
18.8%
29.2%
13.5%
24.7%
-200.0%
-150.0%
-100.0%
-50.0%
0.0%
50.0%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
In m
illio
n T
HB
Gross profit %Margin
YoY Growth 169.3%
QoQ Growth 100.6%
YoY Growth 361.0%
• GPMs are indifferent
across product types
in 2Q 2020
Continual Increase of Gross Profit
28% 26% 27% 28%32%
28%
30%
37% 35% 29%33%
36%
36%
34%
4% 4% 5%4%
5%
5%
5%
2% 2% 2%1%
1%
2%
1%
12% 9% 10%
13%
9%
13%
11%
16% 24% 27%21%
17%
17%
19%
181 192
203 212
233
337
444
0
50
100
150
200
250
300
350
400
450
500
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
In m
illio
n T
HB
Transportation Salary & Wages Office rental Depreciation and Amortization Other Fee Others
Selling & Admin Expenses
22
Note: (1) includes commission, insurance, consultation, bank fee
(1)
• Without extraordinary share-based expenses
from ESOP, our logistic cost increased
marginally due to slightly increase of CIF
incoterm.
• Other SG&As remained unchanged QoQ
SG&A Breakdown
265 172
254
491
1,224
486
1,715
196 204
205
225
267
387
492
460 376
459
716
1,490
873
2,207
16.2%12.5% 14.6%
19.0%
30.7%
15.0%
25.6%
-200.0%
-150.0%
-100.0%
-50.0%
0.0%
50.0%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
3,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
In m
illio
n T
HB
EBIT DA EBITDA Margin
Historical Record of EBITDA
23
EBITDA and EBITDA Margin
YoY Growth 152.8%
QoQ Growth 108.1%
YoY Growth 223.8%
Interest and Tax Expenses
24
5,846 5,527
3,625
947 1,036
615
264 90
62
7,057 6,653
4,302
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Dec 19 Mar 20 Jun 20
In m
illio
n T
HB
Long term Current portion of LT loan Short term
51 39 39
2.95%2.27%
2.81%
6.01% 5.69% 5.36%
-5.00%
-3.00%
-1.00%
1.00%
3.00%
5.00%
7.00%
0
10
20
30
40
50
60
70
80
4Q 19 1Q 20 2Q 20
In m
illio
n T
HB
Interest expense Effective interest rate MLR
Short term & Long term loan Interest expense
4,750
6,798
4,243
34%
66%
100%
10%
60%
110%
160%
210%
260%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2018 2019 1H 2020
In m
illio
n T
HB
Loan from local institutions (Ex. RAOT portion)
Loan under RAOT program
% Loan under RAOT
Loan under RAOT program • We have benefited from RAOT subsidy
program for the interest paid to the
banks at the rate of 3% which will last till
2026.
• Ultimately, our expansion is financed by
interest-free loans.
• Going forward, 100% of our term-loan will
be under RAOT interest subsidy program
25
• With new committed
investment in the future, our
effective tax rate will remain at
single digit.
• Thanks to tax heaven scheme
from the Board of Investment
in Thailand (BOI) for the 5-8
years tax free for new
investment.
• The investment plan together
with location to achieve
capacity beyond 70 bn pcs
under consideration.
32,619 35,716
45,828
54,379
60,997
65,940 70,191
7.5%
7.1%
5.7% 5.7%
6.3%
7.7%7.4%
-
20,000
40,000
60,000
80,000
100,000
120,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2020 2021 2022 2023 2024 2025 2026m
illio
n p
cs
Installed capacity (RHS) Estimated effective tax rate (LHS)
Estimated Effective Tax Rate 2020 - 2026
Estimated Effective Tax Rate
180 105
181
422
1,057
328
1,479
7.2% 3.5% 5.8%11.2%
21.8%
5.6%
17.2%
-200.0%
-150.0%
-100.0%
-50.0%
0.0%
50.0%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20
In m
illio
n T
HB
Net profit %Margin
26
Net profit and Net profit Margin
YoY Growth
350.3%
QoQ Growth 150.5%
YoY Growth 487.7%
Record Breaking of Net Profit
27
Asset Liabilities and Shareholders’ Equity
Key Financial Ratios
• Strong balance sheet from shorter cash
cycles and lower debt leverage
• IBD/E Ratio was 0.21x in 2Q 2020
significantly decrease from 1.39x in 2019
due to prepayment of the loan and the
increase in funds from IPO
581
14,376
1,612
1,769
1,612
1,613
8,562
8,690
221
221
628
808
13,216
27,476
0
5,000
10,000
15,000
20,000
25,000
30,000
YE19 Jun-20
In m
illio
n T
HB
Cash and Cash Equivalent Accout Receivables Inventories
PPE Goodwill Other Assets
264 62 1,393 2,110
6,793 4,240
364
519
4,402
20,546
13,216
27,476
0
5,000
10,000
15,000
20,000
25,000
30,000
YE19 Jun-20
In m
illio
n T
HB
Account Payable ST-Loan from Financial instituitions
LT-Loan from Financial instituitions Other Liabilities
Shareholders' Equity
1.390.21
2.00
0.34
4.6%
10.8%
13.9% 14.4%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
0.00
1.00
2.00
3.00
4.00
2019 6M 2020
IBD/E D/E ROA ROE
Strongest Ever Balance Sheets
Shortest Cash Cycle
28
58 61 58 51
42 35
50
60 53
52
50
45
(37)(48) (47) (46) (47) (52)
70 73
64 57
45
28
(120)
(100)
(80)
(60)
(40)
(20)
-
20
40
60
80
(60)
(40)
(20)
-
20
40
60
80
100
120
140
1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20
AR days Inv. days AP days Cash cycle (days)
• Credit
tightening
• Higher % of
advance
payment to
secure orders
• Empty of FG at
factory
• Minimal WIP
gloves
15,130 15,130 15,130
23,606
27,153
8,476
3,547
5,466
15,130 15,130
23,606
27,153
32,619
2016 2017 2018 2019 2Q 20
mill
ion p
cs
Installed capacity per year Additional capacity
Capacity Development During the Past 5 years
29
Installed capacity per year
Hat Yai (HY)
Trang (TG)
Surat Thani (SR)
Section 3: Business Outlooks
2 2
9
12
16
22
0
5
10
15
20
25
NR gloves NBR gloves
mo
nth
s
Dec-19 Jun-20 Aug-20
31
Lead Time of Product Shipment
• Backlogs have overflown to
Dec 2021 for NR and Mid 2022
for NBR gloves.
• Streamlining production to
yield highest output to capture
the demand.
• Gap of spot price and normal
selling price become narrower.
• ASP is in a reflection of strong
demand and continual price
increase.
Current Shipment Lead Time (Backlogs)
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
31-Dec-19 31-Jan-20 29-Feb-20 31-Mar-20 30-Apr-20 31-May-20 30-Jun-20 31-Jul-20 13-Aug-20
World’s Cases of COVID-19
32
Cumulated confirm cases
In this month, the first corona virus death was reported outside China. France announced the first coronavirus death in Europe and US also reported a death. A cruise ship in Japan quarantined thousands.Italy saw a major surge in cases, Iran emerged as a second focus point and Latin America reported its first case. The disease the virus causes was name to COVID-19.
U.S. officials approved widespread testing and declared a national emergency. U.S. led the world in confirmed cases and more states in US issued stay-at-home directives.The E.U. barred most travelers from outside the bloc.India announced a 21-day lockdown
Cases surged in Russia. The global death toll surpassed 200,000.
Found that the coronavirus reached France in December. Infections in Latin America continue to rise.Coronavirus deaths in the U.S. passed 100,000.
Coronavirus tore into regions previously spared.Coronavirus cases in Africa topped 200,000.The outbreak surged, with clusters on several continents.Southern U.S. states saw sharp rise in cases.
Iran announced new lockdown measures.U.S. deaths surpassed 130,000.Brazil’s president tested positive.Hong Kong shut down schools amid a third wave.Tokyo raised its pandemic alert level.A study in South Korea found that older children spread the virus comparably to adults.India reached a million coronavirus cases, and lockdowns were reimposed.Israel announced new restrictions.
11 Jan 2020, China reported its first death. After that other countries, including U.S., confirmed cases. Wuhan, a city of more than 11 million, was cut off by the Chinese authorities. The W.H.O. declared a global health emergency.
31 Dec 2019, Chinese authorities treated dozens of cases of pneumonia of unknown cause.
1,152 1,155 1,144 1,676
2,129
671 542 622
714
949
500 706 696
651
844
337 410 372
418
468
86 93 130
132
235
83 93 147
131
182
20 17 28
39
49
2,849 3,016 3,138
3,761
4,857
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2Q 19 3Q 19 4Q 19 1Q 20 2Q 20
In m
illio
n T
HB
Sales revenue by region
Asia Europe North America Latin America Middle East Africa Australia,Oceania
Revenue Breakdown by Region in 1H/2020
North America
17.4%
Latin America
10.3%
Europe
Asia
Australia and Oceania
44.2%
19.3%
Middle East
4.3%
Africa
3.6%
33
Worldwide Distribution and Various Sales Channels
1.0%
AS 46.6%AS 27.1%
EU 14.8%
EU 32.8%
US 29.6%
LA12.0%ME 78.6%AF 39.3%AU 25.9%Growth
QoQ 29.2%
• Higher % of geography
breakdown to US and EU
(where the NBR gloves are
in deep shortage) shall be
seen in 3Q 2020 onwards.
• Prices have been
increasing across all
types of gloves.
• NBR latex prices adjusted
more aggressively than
NR latex during 3Q 2020.
• Ultimately in long-term ,
STGT will benefit from the
rebased higher selling
prices whereby raw
materials remain relatively
favorable to margins.
Key Investment Highlights
Committed Expansion Plan Fasten Up
34
Strategic Location for Key Suppliers and Tax Privileges
Hat Yai,
Songkhla
Karnchanadid,
Surat Thani
Kantang,
Trang
Installed
Capacity(1)
5,625 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Installed
Capacity(1)
17,041 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Hat Yai Plant
Surat Thani Plant
Trang Plant
Installed
Capacity(1)
9,953 mm pieces per year
Main Raw
Material
Concentrated Latex
1
2
3
3 Production FacilitiesTotal Installed Capacity of
32,619 mm pieces per year
Note: (1) Installed capacity as of 30 June 2020
Project SR2 (1Q 21)
Installed
Capacity
2,177 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Project SR3 (2Q 21)
Installed
Capacity
3,992 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Sadao,
Songkhla
Project Sadao1 (3Q 21)
Installed
Capacity
2,903 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Project Sadao2 (1Q 22)
Installed
Capacity
7,258 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Chumphon
Project CP (4Q 22)
Installed
Capacity
8,709 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
Project TG3-4 (4Q 23)
Installed
Capacity
13,064 mm pieces
per year
Main Raw
Material
Concentrated Latex /
Synthetic Rubber Latex
7 Additional Production
Facilities
Total Installed Capacity of
38,102 mm pieces per year
10 Production Facilities
Total Installed Capacity of
70,721 mm pieces per year
in 2026
New
New
New
New
New
New
Update Expansion SR2
35
32,619 32,619 35,716 45,828
54,379 60,997
65,940 3,097
10,112
8,551
6,618
4,943 4,250
32,619 35,716
45,828
54,379
60,997
65,940
70,191
1,803
7,432
5,234 4,094
2,100 2,402
613
(25,000)
(20,000)
(15,000)
(10,000)
(5,000)
-
5,000
10,000
-
20,000
40,000
60,000
80,000
100,000
120,000
2020 2021 2022 2023 2024 2025 2026
Mill
ion p
cs
Installed Capacity and CAPEX
36
2020 – 2026 CAPEX(1)
Note: (1) CAPEX for the expansion to achieve the installed capacity of 70 billion pieces (excluding land purchase)
Growth 115.2%
Growth 40.5%
8,155 8,201 8,544 9,044 9,926 10,660 11,182 11,708
47 343 499
883 734
522 526
570
8,201 8,544 9,044
9,926 10,660
11,182 11,708
12,278
1,898 2,034 2,048 2,406 1,099 1,286 1,605 2,246
(25,000)
(20,000)
(15,000)
(10,000)
(5,000)
-
5,000
10,000
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22
Mill
ion p
cs
Installed capacity mn pcs. (LHS) Additional mn pcs. (LHS) CAPEX THB mn. Ex. Land (RHS)
CAPEX Unit: In million THB
Gloves in Scarcity Worldwide
37
22
22
22
22
24
24
26
26
26
27
28
28
29
29
29
32
32
33
35
35
35
36
39
41
41
45
47
49
53
57
58
60
66
74
74
75
77
80
80
81
89
91
97
101
115
116
128
137
149
160
179
193
202
211
229
252
272
338
349
477
567
758
869
1778
2132
0 500 1000 1500 2000 2500
New Zealand
Nigeria
Cyprus
Austria
Morocco
Slovakia
Sweden
Kenya
Egypt
Czech Republic
Kazakhstan
Myanmar
Cambodia
Ukraine
Ireland
Kuwait
Jordan
Hungary
Nepal
Bulgaria
Taiwan
Qatar
Saudi Arabia
Belgium
Chile
Greece
Ecuador
Panama
Mexico
Japan
Brazil
Sri Lanka
Romania
Argentina
Netherland
Switzerland
Colombia
Pakistan
Russia
Portugal
Philippines
Hong Kong
France
Israel
South Africa
Australia
Poland
Vietnam
Indonesia
Bangladesh
Germany
Canada
Korea
Peru
Spain
Italy
UAE
Turkey
Singapore
UK
Malaysia
China
USA
India
Thailand
Order Enquiries from Emails
• Enquiries for gloves order from new
customers average over 100 emails
per day from over 140 countries
throughout the world.
Order Enquiries From Online Channels
38
2019-2020
217 153 40 253
65
2,445
148
3,514
73
3,852
115
6,936
90
5,227
86 - 79 - 116 -155
-171
-
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
www.sritranggroup.com www.sritranggloves.com Facebook: SriTrangGloves Thailand Facebook: I'M GLOVE BLACK
Facebook: Sri Trang Gloves Global Facebook: SriTrangGloves Vietnam Line@
• Enquiries for gloves
order from all online
channels increased
drastically over 600%
from 2019
212 233 268 300 360 425 489
10%
15%12%
20%18%
15%
-20%
-10%
0%
10%
20%
30%
0
100
200
300
400
500
600
700
800
2016F 2017F 2018F 2019F 2020F 2021F 2022F
Bill
ion p
cs
Glove demand YoY growth
39
Global Rubber Glove Demand
Source: MARGMA and STGT forecast
Export Concentrated Latex Price and Import Synthetic Rubber
Latex Price during 2014 – June 2020
Source: Rubber Authority of Thailand (RAOT) and Thai Customs
Note: (1) Based on 60.0% Dry Content of Concentrated Latex
(2) Based on 43.5% Dry Content of Synthetic Rubber Latex
20
30
40
50
60
70
80
90
100
110
120
Ja
n 1
4
Mar
14
May 1
4
Ju
l 1
4
Se
p 1
4
Nov 1
4
Ja
n 1
5
Mar
15
May 1
5
Ju
l 1
5
Se
p 1
5
Nov 1
5
Ja
n 1
6
Mar
16
May 1
6
Ju
l 1
6
Se
p 1
6
No
v 1
6
Ja
n 1
7
Mar
17
May 1
7
Ju
l 1
7
Se
p 1
7
Nov 1
7
Ja
n 1
8
Mar
18
May 1
8
Ju
l 1
8
Se
p 1
8
Nov 1
8
Ja
n 1
9
Mar
19
May 1
9
Ju
l 1
9
Se
p 1
9
Nov 1
9
Ja
n 2
0
Mar
20
May 2
0
TH
B/K
g
Export Concentrated Latex Price Adjusted Concentrated Latex Price Import Synthetic Rubber Latex Price Adjusted Synthetic Rubber Latex Price(2)(1)
Raw Material Price
Forecasted Global Rubber Glove Demand during 2016 - 2022
Solid Demand Under Covid & Post Covid as “New Normal”
Best in Class Workforce Treatment
40
BSCI Rating as of July 2020
HY: Most updated rating done in Jul 2020 as overall “A” rating
SR: Most updated rating done in Jul 2019 as overall “B” rating
TG: To be done in Sep 2020
• We have been scored and
ranked by highly reputable
accredited social auditing
“BSCI” as a highest rating of
“A” in all aspects.
• Our workforce is well
balanced at local:foreign
workers 55:45
• We have treated our
workforce with full
compliance with laws and
regulations.
• We have never experienced
having a forced labor issue
with any regulators or
customers worldwide.
41
Strong Reputation and Best-in-class Products and Services
Operational excellence with international standards/certificates
Source: Company
Sustainability
Certificates
Product
Certificates
Factory
Management
Certificates
Standards
ISO 9001: 2015 DIN EN ISO
13485: 2016
ISO 13485: 2016 ISO 22000: 2005
Thai Industrial
Standards
MDD 93/42/EEC
Class I
MDD 93/42/EEC
Class I Sterile
PPE (EU)
2016/425
Category III
ISO 14001: 2015 Business Social
Compliance
Initiative
Green Industry
international
standard base in
USA
European
specification
requirement
Australian/
New Zealand
standard
Japanese
standard
Chinese
standard
Brazil
standard
Touch Of Life
Sri Trang Gloves Thailand
Over 30 years, STGT brand has been built and
successfully integrated into Thai society as one of the
most successful rubber glove producer in Thailand
STGT offer a wide range of high-quality natural rubber and
nitrile examination gloves as well as general-purpose disposable
gloves, both powdered and powder-free, catering to a wide variety
of applications to satisfy and adapt to the changing lifestyle of
consumers
Successful Development Of Rubber Glove
Business Model
Forest
Stewardship
Council
Certificates
Our Pride of Awards and Industry Recognition
42
Our Corporate Social Activities
43
Activities
• Donates gloves 1 mn pcs. to Chinese government
• Donates gloves 2 mn pcs. to Ministry of Public
Health
• Donates gloves in total of 1.1 mn pcs. to
governor, hospitals and organizations in
Songkhla, Surat Thani and Trang provinces
• “Sharing a Touch of Love” project, giving 1,000
lunch boxes to people affected by COVID-19 in
Songkhla, Surat Thani and Trang provinces
Chinese Government
Ministry of Public Health
Governor of Trang Province
Kanjanadit Hospital
Governor of Songkhla Province
Surat Thani Hospital
Donate lunch boxes
Helping Chronic patient Empowering disability persons
Thai Red Cross
44
Investor Relation:
Call: +66 2207 4500 Ext. 1404
Email: [email protected]
www.sritranggloves.com
Contact Us