Chuwit Jungtanasomboon, Chief Executive Officer of North East Rubber Public Company Limited (SET: NER), revealed that the company’s operating performance in 3Q26 is expected to improve, in line with rising rubber prices.
NER maintains its 2026 revenue target at THB 30 billion, despite anticipating that both production volume and sales will decrease from the original target of 500,000 tons to approximately 440,000 – 450,000 tons. This adjustment stems from lower-than-expected raw material procurement in 2Q26. Nevertheless, the higher average selling price is expected to offset the decline in sales volume, allowing the company to maintain its revenue target.
Regarding the construction of its third factory, NER has decided to indefinitely postpone the project, opting to wait for greater clarity on the rubber supply situation. This follows concerns that the El Niño phenomenon might impact rubber yields in the near future. Therefore, the company is prioritizing risk management and maintaining existing operational efficiency.
As for the Memorandum of Understanding (MOU) with the Rubber Authority of Thailand (RAOT), there have been no additional raw material deliveries since a large batch was supplied late last year. NER is planning discussions with the RAOT to establish further cooperation strategies.
NER continues to seek new customers in India to support future growth. Meanwhile, the company’s existing customer bases in China and Singapore are considered sufficient, and there are currently no plans to extend customer segments in those markets.
On the risk from the El Niño phenomenon, NER assesses that the impact on rubber raw material supplies will depend on weather severity from September to December. The company expects significant effects to materialize in Q1 – Q3 of 2027 rather than this year. Currently, orders have been secured to nearly cover the whole year.
The late arrival of seasonal rains earlier this year caused delayed rubber tapping. However, the company managed this situation by adjusting production plans across its factories on a quarterly basis, ensuring alignment with available raw materials and sustaining operational efficiency. As a result, NER is confident in achieving its revised sales volume targets.
In 2Q26, NER recorded a net profit of THB 436.36 million, with sales revenue of THB 7,143.58 million. These results are attributed to effective cost management, raw material sourcing, and price risk management, despite persistent volatility in the global economy and weather conditions.
