Price STA shares refer to Sri Trang Agro-Industry Public Company Limited (STA). They have surged more than 92% since the start of the year amid a global rubber industry recovery after the company’s earnings surprised with the highest Q2/2026 profit in four years.
This recent rise in STA shares is supported by an uptrend in rubber prices, supply risks, and the European Union’s EUDR regulation, which could alter competition dynamics in the natural rubber industry.
But with the stock price having climbed significantly, is there still upside potential? Thairath Money delves into STA’s recovery story, from business structure and performance to analysts' views on how far this new upcycle might take the company.
First, let’s get to know Sri Trang Agro-Industry Public Company Limited (STA), the owner of a fully integrated natural rubber supply chain business, starting from upstream operations with rubber plantations in Thailand.
Midstream operations produce smoked sheets, block rubber, and concentrated latex, while downstream activities include manufacturing and distributing rubber gloves and finished products such as hydraulic hoses.
Regarding revenue breakdown by product in Q2/2026, the core income comes from natural rubber business, accounting for a high 80.3%, divided into:
Looking back at performance from 2022 to 2025, volatility aligned with the industry’s cycle is evident.
However, in Q2/2026, STA’s performance rebounded sharply, reporting a net profit of 895.0 million baht — the highest in four years. This profit rose 38.7% from the previous quarter and turned positive from losses in the same period last year.
The natural rubber business achieved its highest gross margin in seven quarters at 9.3%, driven by increased average selling prices, while the rubber gloves business improved gross margin to 17.0%, the highest in four years, thanks to appropriately passing on higher costs through price adjustments.
Consequently, STA’s share price has steadily climbed on the trading floor this year, closing at 23.50 baht on 22 October 2026 — a 92.62% increase since the year’s start.
Securities analysts from Yuanta Securities (Thailand) stated in an analysis that they hold a positive outlook on Q4/2026 through 2027 earnings, driven by higher sales volume and prices despite rising raw material costs. The EUDR regulation by the European Union on deforestation-free products and supply risks are key factors influencing SICOM rubber prices and the re-rating of rubber stocks.
For Q3/2026, normalized profit is forecast at 563 million baht, down 51% from the prior quarter but turning profitable compared to losses in the same period last year due to recovering gross margins.
They estimate Q4/2026 could deliver the highest profit of the year, with sales volume possibly accelerating to 400,000 tons (including about 60,000 tons of EUDR-compliant rubber), potentially boosting 2026 normalized profit upside by 20-25%.
Looking ahead to 2027, rubber prices are expected to be supported by tight supply conditions and the enforcement of the EUDR regulation, which is anticipated to take effect on 30 December this year without further delays. This will give sellers stronger bargaining power as raw materials become scarcer.
Regarding valuation, analysts view that shares in this sector still trade at reasonable P/E multiples, with STA trading at a modest 10.4 times P/E for 2027 and expected to yield a high dividend return of 6.3%.
Therefore, they maintain a “buy” recommendation with a 12-month target price of 25.50 baht and strategically suggest accumulating shares when prices dip to around 22.00 baht, believing the industry’s upcycle has only just begun.
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