NER Expects 10% Expansion in 2024 Sales with New Factories to Meet High Demand

North East Rubber Public Company Limited (SET: NER) is expecting a solid 1Q24 performance after booking an abundant backlog for the whole first half of the year, coupled with higher demand from China and rubber prices as well as economic recovery and stabilization of FX rates.

The company expected to record 510,000 tonnes in sales this year, up 5-10% from 2023. The increase is due to an upgrade in factories, which can ramp up the output. NER also invested THB 1,400 million to build the third rubber block factory and compounded rubber. It will be divided into two phases. The first phase is expected to be completed later in 2024 and will start recognizing revenue in 2025.

The new factories will give upside to NER’s production capacity tremendously, increasing from 515,600 tons to 818,000 tons per annum. This will fully support the company’s domestic and overseas operations.

NER moves forward to drive sustainability for the environment, community and governance. This also goes along with the company’s management plan to use existing resources efficiently and also lower operating and production costs.


Phillip Securities (Thailand) recommended “BUY” on NER with a target price at THB6.15 per share. The firm expected NER to record 26,998 billion baht in revenue and 1,740 million baht in profit in 2024. This is an increase from a forecast of 25,000 million baht in revenue and 1,748 million baht in net profit. A decrease in net profit in 2024 would be due to lower rubber prices.