According to Yuanta Securities, North East Rubber Public Company Limited (SET: NER) is expected to report a third-quarter net profit of THB 354 million for 2025, marking a 28% decline from the previous quarter but a 60% increase from a year earlier.
The forecast comes in below earlier estimates, which had seen earnings closer to THB 450 million, due to lower-than-expected sales volumes and average selling prices (ASP).
Looking into the final quarter of 2025, Yuanta projects a rebound in normalized profit on a quarter-on-quarter basis, driven by improving sales volumes and ASP. Nonetheless, year-on-year comparisons are likely to remain challenging, as volumes are still projected to lag behind the previous year.
Despite the subdued third-quarter performance, the analyst maintains a positive outlook on NER’s prospects in the fourth quarter. A special gain of no less than THB 100 million from insurance compensation is anticipated, which could help lift both quarterly and annual profit growth.
However, the brokerage firm suggests employing a ‘wait-and-accumulate’ approach, noting that the third-quarter results are unlikely to be a catalyst and that the dividend announcement will coincide with the full-year financial results in February 2026.
For the second half of 2025, Yuanta expects a dividend payout of THB 0.31 per share, implying a yield of 7%.
Following these developments, the analyst reiterates a ‘Buy’ rating on NER, while keeping its target price unchanged at THB 6.20 per share.
