Sri Trang Gloves (Thailand) Public Company Limited has released significant updates following its Board of Directors’ Meeting No. 2/2025 held on 17 February 2025. The announcements, which include a dividend proposal, business restructuring, and the agenda for the 2025 Annual General Meeting of Shareholders (AGM), are expected to capture shareholders’ attention and could impact the company’s market performance.

Key Highlights from the Board Meeting

• Dividend Payment: The Board has proposed a dividend payment of THB 0.50 per share for the fiscal year 2024, totaling approximately THB 1,432.59 million. Shareholders of record as of 21 April 2025 will be eligible to receive the dividend, with payment scheduled for 8 May 2025. This dividend is subject to a 20% corporate income tax.
• Director Elections: Four directors are due to retire by rotation, and the Board has proposed the re-election of three current directors, including two independent directors. Additionally, the Board recommends appointing Mr. Busarin Vanaswas as an independent director and Audit Committee member, replacing Mrs. Unakorn Phruithithada.
• Director Remuneration Increase: The Board has proposed an increase in directors’ remuneration for 2025 to reflect their expanded responsibilities. For example, the monthly remuneration for the Chairman of the Board and the Audit Committee will rise from THB 110,000 to THB 120,000, while independent directors will see an increase from THB 80,000 to THB 89,000.
• Appointment of Auditors: EY Office Company Limited has been proposed as the auditor for 2025, with a fee of THB 3,770,000. This marks a 3% increase from the prior year, attributed to additional workload from business expansion and updates to accounting standards.
• Entire Business Transfer (EBT): The company plans to undertake the EBT of Sadao P.S. Rubber Co., Ltd., a subsidiary that has been inactive since 2021. This restructuring aims to enhance operational efficiency and reduce costs. The subsidiary owns land leased by Sri Trang Gloves for its medical glove manufacturing, and the transfer will allow direct land utilization. The transaction, expected to conclude by June 2025, will result in the dissolution and liquidation of the subsidiary.
• 2025 AGM Details: The AGM is scheduled for 9 April 2025 at 10:00 a.m. via electronic conferencing. The agenda includes nine items, notably the approval of financial statements, dividend payments, director elections, remuneration adjustments, the EBT transaction, and other matters.

Potential Impact on Shareholders and Share Price

Shareholders should take note of the dividend announcement, which offers a steady yield and could attract investor interest. Additionally, the EBT transaction, aimed at optimizing operational efficiency, might positively influence cost management and long-term profitability. The proposed increase in directors’ remuneration signals confidence in the company’s governance and performance outlook, while the higher audit fees reflect the company’s expanding scope of operations.

However, the restructuring and associated costs, along with the slight increase in audit expenses, could weigh on short-term margins. Investors may react to these developments based on their perception of the company’s financial health and growth strategy.

Conclusion

Sri Trang Gloves continues to demonstrate proactive governance and strategic planning with its dividend proposal, leadership updates, and business restructuring. Shareholders are encouraged to participate in the upcoming AGM to stay informed about the company’s direction. These developments could influence investor sentiment and the company’s share price in the near term.