Globlex Securities noted that North East Rubber Public Company Limited (SET: NER) reported a solid net profit of THB 395 million for the fourth quarter of 2025, marking an increase of 21% quarter-on-quarter and 10% year-on-year. The company’s revenue for the quarter reached THB 7.2 billion, up 8% from the previous quarter but still 19% lower YoY, as weaker domestic sales were offset by a surge in overseas market demand.
EBITDA for 4Q25 stood at THB 427 million—down 17% QoQ and 38% YoY—resulting in an EBITDA margin of 5.9%, dropping from 7.7% both in 3Q25 and 4Q24. Interest expense decreased slightly to THB 135 million, representing a reduction of 2% QoQ and 4% YoY. However, the company’s core net profit was THB 227 million, down by 33% QoQ and 53% YoY . Notably, domestic revenue fell sharply by 34% YoY to THB 4.3 billion, while export revenue surged by 24% YoY to THB 3 billion, reflecting NER’s growing presence in global markets.
For the full year 2025, NER’s net profit grew to THB 1.9 billion, up 13% YoY, driven by a 10% increase in total revenue to THB 30.2 billion. This included a one-time THB 127 million insurance claim recorded in 4Q25. Domestic sales revenue advanced 5% YoY to THB 21.5 billion, while exports soared 26% YoY to THB 8.8 billion. Sales volume rose to 475,000 tons in 2025, up from 439,000 tons in 2024, attributed to robust demand and the company’s effective marketing strategies, particularly targeting Chinese rubber tire manufacturers. Gross profit margin, however, slightly contracted to 9.7% in 2025 from 10.1% in 2024, reflecting YoY pressure on selling prices.
Looking ahead, NER plans to expand its total production capacity by 30% to 0.82 million tons per annum (mtpa), up from the current 0.51 mtpa. The expansion, set in two phases—0.15 mtpa in 2Q27 and another 0.15 mtpa in 3Q27—faces a 6-month delay from the original schedule. As rubber prices begin to trend upwards after a recent slide, Globlex expects NER to benefit from wider margins in 2026 before the expanded capacity drives further gains in 2027.
Globlex views NER as one of Thailand’s most attractive investments in the agriculture and automotive sectors, with the new administration under the Bhumjaithai Party slated to accelerate exports and boost domestic demand for agricultural and automotive products—long considered the backbone industries of the Thai economy.
Accordingly, Globlex maintains a “BUY” recommendation on NER and raises its target price from THB 6.3 to THB 7.4, based on a rollover to 2026 estimated price-to-earnings (P/E) of 7x. The broker remains confident in NER’s ability to grow sales volume from 475,000 tons in 2025 to 500,000 tons in 2026, and capitalize on higher rubber prices and timely capacity expansion, setting the stage for further upside in NER’s share price.
