Chuwit Jungthanassamborn, CEO of North East Rubber Public Company Limited (SET: NER), provided an update on the company’s business outlook during the Opportunity Day hosted by the Stock Exchange of Thailand on February 25, 2025.
The company reported a net profit of THB 1,652.47 million in 2024, marking a 6.91% increase compared to THB 1,545.60 million the previous year. This gain is attributed to a 9.60% increase in sales revenue, totaling THB 27,448.33 million, up from THB 25,045.17 million in the prior year.
Revenue growth was driven by increased rubber prices, with the average selling price of rubber rising by 24.04% in 2024 compared to 2023. The price difference accounted for an additional THB 5,320 million in revenue, while a reduction in volume contributed a decrease of THB 2,915.58 million.
Distribution costs were reduced to THB 368.37 million, or 1.34% of total sales, representing a decrease of THB 198.01 million or 34.96% from 2023.
For 2025, NER plans to expand production capacity with Phase 3 of its rubber block plant (STR3), increasing capacity to 320,000 tons.
The total investment of THB 2,059 million includes land costs of THB 25 million, land improvement at THB 10 million, office and raw material storage buildings at THB 499 million, machinery and installation at THB 1,468 million, and tools and equipment at THB 55 million.
The company has begun land preparation and expects the plant to be completed by May 2026, ready for production in 3Q26, stated Chuwit. Following the expansion, the production capacity is set to rise from 515,600 tons in 2025 to 675,600 tons in 2026 and reach 835,600 tons by 2027.
Sales forecasts for 2025 target 500,000 tons, with a 12% increase to 560,000 tons in 2026, and further growth to 670,000 tons in 2027 and 770,000 tons in 2028.
Revenue projections for 2025 are approximately THB 34,587 million, rising to THB 40,750 million in 2026, THB 50,267 million in 2027, and THB 59,968 million in 2028.
Moreover, NER is developing new plants in Thailand and Côte d’Ivoire (Ivory Coast), Africa. The third domestic plant in Buriram is underway, and expected to be completed before the Songkran Festival.
In Côte d’Ivoire, company establishment is complete, but operational coordination faces challenges due to governmental measures.
The Indian market, part of a joint venture since late 2024, is expected to account for about 15% of total sales in 2025. In Thailand, NER’s major clients are predominantly Chinese tire manufacturers, with additional clientele from Thai entrepreneurs.
For 2025, the company targets a 14% sales growth from the previous year, reaching THB 34,000 million in revenue, with a projected net margin of 6-7%.
NER aims to achieve THB 30 million in finished goods sales, focusing on livestock mat products for pig and cow farms, with new product launches such as pet mats for veterinary hospitals planned.
NER emphasizes product quality, ensuring tailored production to meet specific customer requirements, facilitating efficient integration into client production processes.
Regarding U.S. import tariffs, passenger car tire duties are about 17%, with large logistic vehicle tires at 27%. Despite slight impacts, these rates remain manageable compared to Vietnam and Indonesia, which face tariffs of 24-25%, said Chuwit.
