Mr. Chuwit Jungtanasomboon, Chief Executive Officer of North East Rubber Public Company Limited (SET: NER), told ‘Kaohoon’ that, for 3Q25, the sales volume of natural rubber is projected to be around 110,000 tons, up from 96,000 tons in the same period last year, thanks to new customers from China and India. However, the average selling price is expected to decline slightly from the previous quarter.
The company will hold a board meeting to approve 3Q25 results and announce the financial statements on November 3, 2025.
As for the outlook in 4Q25, natural rubber sales volume is expected to remain at similar levels to the same period last year, given steady demand from the automotive tire market — including both internal combustion and electric vehicles (EVs).
Nevertheless, the global economic outlook is likely to begin improving, especially following trade negotiations between the United States and China. Advance orders for the first 10 months of 2025 have already extended through February 2026.
For the full year 2025, the company is confident it will push rubber sales to 470,000 tons, up from 440,000 tons in 2024, with 70% domestic customers and 30% exports. This is expected to translate to total sales revenue of THB 32.5 billion, up from THB 27 billion in 2024.
According to an analysis by Phillip Securities (Thailand), the firm recommends “BUY” for NER, with a target price of THB 5.15 per share. 3Q25 net profit is estimated at THB 504 million, up 39.6% YoY from THB 361 million but down 9% QoQ from THB 554 million, mainly due to the softer average selling price in line with global rubber price trends and stable sales volume.
Regarding the fire incident at the warehouse on July 20, 2025, total losses are estimated at around THB 153 million, which is expected to be fully covered by insurance. About THB 119 million in compensation was received in 3Q25, and the remainder is expected to be fully settled within 4Q25.
In addition, the management also maintains a 2025 production forecast of 470,000 tons and projects 500,000 tons in 2026, supported by the commissioning of a third factory due for completion in 4Q26.
For short-term investment, the stock does not appear outstanding, but the medium- to long-term outlook remains positive, thanks to complete insurance compensation for losses in 4Q25 alongside a projected recovery in rubber prices and production volume in 2026, which should support future revenues.
Overall, the share price has already reflected short-term negative factors to some extent, and there is still upside potential from the expected recovery in company performance in the rest of 2025.
