Northeast Rubber Public Company Limited (SET: NER) has disclosed its operation outlook for the second half of 2025, anticipating to remain robust, despite facing pressure from ongoing news regarding the reciprocal tariffs from the United States. These duties could slow down orders from certain countries.
According to a report by Pi Securities following a meeting with NER’s management, the company currently has a backlog of over 400,000 tons, covering deliveries through the end of the third quarter of 2025. However, the company’s full-year sales target of 500,000 tons may face risks if the tariff issues remain unresolved.
NER’s management confirmed that they are closely monitoring developments around the US tariffs and will adapt their operational plans accordingly. The company is actively seeking new markets to diversify risk.
Recently, NER’s facility has been certified by a major tire manufacturer in India, and another top tire maker is currently evaluating the company’s processes. This is expected to help reduce NER’s reliance on the Chinese market in the long term.
Due to these evolving dynamics, NER’s plan to build a third block rubber factory—which was initially scheduled to start during the second half of 2025—may be postponed to early 2026. In the meantime, the company has upgraded its existing plant, boosting production capacity by about 15% to support near-term orders.
On the performance outlook, analysts have lowered their 2025 gross profit margin estimate from 11% to 10.2% to better reflect actual costs, whilst forecasting 2025’s net profit at THB 1,863 million, a 13% increase year-on-year. The revised target price stands at THB 6.25 per share, based on a 2025 P/E assumption of 6.2x, maintaining a “Buy” recommendation.
NER’s financial position remains strong. In 1Q25, the company reported total current assets of THB 17.55 billion, compared to just THB 5.22 billion in current liabilities, resulting in a solid current ratio of 3.36x. This highlights NER’s effective liquidity management.
