NER Increases 4% Following the Rise of Rubber Prices

On Monday at 11:37 AM (Bangkok time), the share price of Northeast Rubber Public Company Limited (SET: NER) rose by 4.59% or THB 0.25 to THB 5.70 per share, with a trading value of THB 94.16 million.

Land and House Securities gave a “Speculative-Buy” recommendation for NER with a target price of THB 6.90, as the stock benefited from the weakening baht and the rise of rubber prices, which was caused by the country’s drought forecast for the year and the sales growth that was raised by geopolitical conflicts.

35% of its sales are from exports in which 65% is attributable to Chinese markets as the main client. As of the current circumstances, China needed to stock up more rubber, as the European clients demanded more products produced by the country while they prepared for transportation risks that could emerge due to the ongoing conflicts in the world.

In addition, the company will start recognizing revenue from new clients in 2Q24. This helped support NER’s profit growth in 2024 compared to the same period last year. The company also planned to expand its production capacity by 60% within 2025 and expected the dividend payment in the second half of 2023 to be around 6%.