Yuanta Securities (Thailand) published an analysis on North East Rubber Public Company Limited (SET: NER), recommending a “Buy” and maintaining the year-end 2026 target price at THB 6.20.
The securities firm also maintains its estimate for 2026 normalized profit at THB 1,974 million (an increase of 20.8% year-on-year) due to a positive outlook for the rubber industry, which benefits from a limited global supply while demand remains steady or increases.
At the end of the year, the broker expected that the majority of rubber supply will be used for EUDR-grade sales, which have a higher gross profit margin (GPM), resulting in tire manufacturers needing to stockpile rubber in advance early in the year to ensure sufficient supply for regular tire production.
Pi Securities also recommends “Buy” for NER, citing positive factors such as continued growth in 2026 earnings in line with management’s sales target of 500,000 tons, with the prospect of increased sales in India—a market that may see a restructuring of taxes on blended rubber products.
The main growth is expected in 2027, and the recommendation remains unchanged. The analyst house set a target price for NER at THB 5.84 (6x PER for 2026). NER’s second-half 2025 dividend is set at THB 0.26 per share (total annual dividend at THB 0.31 per share), with the ex dividend (XD) date on April 23 and payment on May 7, 2026.
ASL Securities also recommends “Buy,” setting a target price for this year at THB 5.50 per share, based on a post-COVID-19 average PE ratio of 5.60. The 2026 outlook remains positive, with the company targeting sales volume at 500,000 tons and foreseeing an uptrend in rubber prices throughout the year. The average selling price is projected not to fall below THB 65 per kilogram.
The main customer base is still Chinese companies, while the company aims to further expand into the Indian market, targeting an increase in the sales proportion from 5% to 10%, and expects to add 2–3 new clients this year.
The net profit forecast for this year is THB 1,815 million, up by around 3.2% from last year’s normalized operating profit, due to projected revenue of THB 31,850 million (up by 5.3%) on 490,000 tons sold at an average price of THB 65 per kilogram, and a GPM of 9.8%—slightly higher than last year’s 9.7%.
The increased average selling price is attributed to the return of El Niño, which is expected to affect the latter half of the year. SG&A to sales is expected to remain stable at 2.3%, with financial expenses about THB 552 million.
In summary, for 2025, the company reported total revenue of THB 30,510.20 million and a net profit of THB 1,884.52 million. For 2026, NER targets revenue growth to THB 32,000 million, supported by recovering rubber prices and a clear uptrend, as well as a significant increase in natural rubber sales, which results in improved average selling prices and profitability.
