North East Rubber is expected to report its financial results for the third quarter tomorrow with an outstanding growth, while signaling strong performance in the final quarter of this year due to an increase in orders, mainly from EV businesses.
Mr. Sakchai Jongstapongpun, the Director and Chief Finance Officer (CFO) of North East Rubber PCL (SET: NER) told “Kaohoon” that NER’s Q3 operating result, which will be filed on 7 November, will be growing, following an increase in orders compared to the same period last year.
The delayed 6,600 tonnes orders from the Chinese golden week holiday will be delivered and settled in Q4, which will help NER to meet the 2023 sales target of 500,000 tonnes with ฿30 billion revenue, compared to 446,000 tonnes with ฿25 billion in 2022.
The CFO also viewed that China’s economic stimulus will be very positive as 60% of NER’s customers are Chinese, including Chinese companies in Thailand, notably EV and auto makers, which have high demand for rubber to make tires. Furthermore, the orders stream from India also contributed to Q1 deliveries in 2024 as well. Meanwhile, the livestock rubber mat segment is also growing, seeing an increase in orders mainly from Japan, while the Vietnamese orders would add up to NER’s growth as well.
NER’s Chief Executive Officer (CEO), Mr. Chuwit Jungtanasomboon, said NER got a 5-star rating on the Corporate Governance Report (CGR: Excellent) from IOD and SET, which reflected the company’s sustainable development vision.
As for 6 November morning, NER opened trade at ฿4.72 per share with P/E ratio of 5.18x, P/BV of 1.27 and Beta at 1.15. NER price has fallen this year as its price performed -26.3% YTD but has a high dividend yield of 8.12%. NER’s price is considered as cheap according to the below-average financial ratio from SET website.
