Land and Houses Securities stated that NER, a major upstream natural rubber producer with over 70% focus on the domestic market, expects core profit in the second quarter of 2026 at 425 million baht, up 67.2% from the previous quarter but down 23.2% from a year earlier, supported by a gross margin recovery to 10.2% on an average selling price of 65 baht per kilogram and lower SG&A expenses from reduced CESS and freight costs. The outlook for the second half of 2026 remains strong, with the average selling price expected to rise another 5 to 6%, supporting gross margin above 10%, along with an expansion of the customer base to major tire manufacturers in India to diversify risk. The research team forecasts 2026 profit at 1.632 billion baht, down 0.1% from the previous year, despite a 2.5% revenue decline on a 6.0% drop in sales volume, cushioned by higher selling prices, an increased domestic market share, and lower SG&A. The research team initiates a buy recommendation with a target price of 4.86 baht per share, based on a PER of 5.5 times, and still offers a dividend yield of around 8%.
North East Rubbers Public Company LimitedResearch team initiates buy recommendation with target price 4.86 baht, citing strong H2 outlook and margin recovery
