Krungsri Securities (KSS) recommends “BUY” rating for North East Rubber Public Company Limited (SET: NER), with a 2026 target price of THB 6.10 per share. This is due to the company’s strong business fundamentals, a low PER of just 4.5 times, and its high dividend yield of approximately 8–9% per year.
Additionally, KSS has noted that NER has consistently maintained a net margin averaging around 6–7% over the past five years and is seen as a company with strong management in a volatile industry. Profits for 2025–2026 are expected to continue growing, supported by an expanding customer base and increased sales volume.
Liberator Securities has a positive outlook for NER’s strong performance and growth prospects. In 2026, NER plans to expand its production capacity by 300,000 tons, expected to be completed in 3Q26, to accommodate new orders from new customers. Research also expects an improved performance compared to the same period last year, supported by higher volume and selling prices.
The broker estimates sales at THB 32.15 billion, up 7% year-on-year, with a sales volume of 487,140 tons (up 4% year-on-year) and an average selling price of THB 66/kg (up 3% year-on-year). The gross profit margin is projected to remain at 10%, and normalized profit is forecast at THB 1.83 billion, a 4% increase from the previous year. This projection does not include revenue from contract manufacturing for the Rubber Authority of Thailand. The recommendation remains “BUY” with a 2026 target price of THB 6.00/share.
For the 4Q25 operating results, recovery is expected quarter-on-quarter, following a rebound in rubber prices, with upside from fire insurance compensation. The share is trading at a forecast P/E for 2025 of under 4 times.
However, there are no immediate catalysts for the share price in the short term. The investment strategy focuses on speculation in line with rubber prices and around annual results, including the dividend announcement for 2H25, for which a high yield of 9% is expected.
For the 9-month period of 2025, the company recorded a net profit of THB 1.48 billion or a net margin of 6.47% of total revenue from sales. Compared to the same period last year, net profit increased by THB 196.27 million or 15.18%. As of 30 September 2025, total assets stood at THB 20.04 billion, an increase of THB 582.44 million or 2.99% from 31 December 2024.
