Mr. Chuwit Jungtanasomboon, Chief Executive Officer of North East Rubber Public Company Limited (SET: NER), stated about the company’s business overview through the Opportunity Day event organized by the Stock Exchange of Thailand (SET). He noted that the company’s performance in 2025 recorded a net profit of THB 1.88 billion, an increase of 14.04%, and total revenue of THB 30.24 billion, an increase of 10.17% compared to the same period last year. This growth was primarily due to increased income from export sales.
Regarding the business outlook for 2026, NER targets sales growth of approximately 10%, driven by a favorable rubber price trend expected to continue rising. The average rubber price for all types is estimated at about THB 70 per kilogram this year. Currently, the company has purchase orders secured until mid-year, reflecting continued strong demand.
In terms of income structure, NER aims to expand the revenue proportion from Indian customers to about 10%, up from roughly 5% last year. These customers include both electric vehicle and internal combustion engine car manufacturers, though the company does not yet have clear data on the proportion of rubber used in electric vehicles. The overall export proportion remains about 30%, with China as the main customer group.
For investment, NER is moving forward with expanding production capacity through the construction of its third factory, which will increase total capacity by about 30%. The project is currently delayed by approximately one quarter and is expected to begin trial operations in 1Q27. The company confirmed that the investment plan will not involve a capital increase and is currently considering negotiations with debentureholders and guarantors to allow the project to proceed.
In the area of sustainability standards, NER continues to develop rubber according to the EUDR standard. Last year, it implemented rubber plantation projects compliant with the standard over approximately 120,000 rai and continues expansion this year. The company is also beginning to expand its European market share through Chinese customers who export to Europe, where there is demand for EUDR-compliant rubber.
Regarding profitability, NER targets a gross profit margin of around 10–11% in 2026 and a net profit margin of about 6%. Its strategy to build relationships with farmers by purchasing rubber at above-market prices remains ongoing, allowing the company to pass on costs to customers.
Concerning financial status, NER has debentures maturing around THB 1 billion in November 2026 and targets a long-term debt-to-equity ratio of 2.5 times. Currently, the ratio stands at about 1.06 times, indicating room to support further business expansion. It estimates that a 0.5% interest rate increase would affect costs by approximately THB 50 million per year.
For dividend policy, NER maintains a payout ratio of 40% of net profit after legal reserve. However, recent dividend payment ratios have been around 30% as the company reserves funds for nearly THB 2 billion in new factory investment to ensure long-term stability.
NER views the upward rubber price trend as the main positive factor for 2026. The main risk is a potential decrease in rubber supply due to drought conditions, while competition from African producers is still not significant due to their much lower capacity compared to Thailand.
In addition, the rubber mat business continues to show growth, targeting sales of more than THB 10 million this year, up from about THB 9.2 million last year, due to increased brand recognition and orders from domestic and international markets.
“The company mentioned the impact of U.S. import tariff measures as a positive factor for the industry, as the tariff rates have been reduced from previous levels, improving price competitiveness. However, the company does not see a direct short-term impact on orders,” Mr. Chuwit concluded.
