Natural Rubber (RSS)

North East Rubber Public Company Limited, or NER, is confident that revenue in 2026 will reach 30 billion baht, in line with its target, driven by higher natural rubber prices and tight global natural rubber supply caused by weather impacts. Chuwit Jungtanasomboon, Chief Executive Officer of NER, said demand for rubber from major tire makers in the Chinese and Indian markets and other key automobile-producing countries continues to have momentum. Growth in the automotive and electric vehicle, or EV, industries, along with the European Union's EUDR environmental regulations, are factors supporting natural rubber demand over the long term. The company estimates that in the third quarter of 2026, higher average selling prices will help support revenue, even though sales volume will be affected by raw material tightness. It will manage production across its plants in line with available raw material volumes, and will continue to monitor rubber price trends in the final stretch of 2026. If supply remains tight and demand from the tire industry keeps its momentum, there is an opportunity to further support NER's selling prices and business.

Trinity Securities estimates that Thai Eastern Group Holdings, or TEGH, still has continued supporting factors in the second half of 2026, maintaining its net profit forecast for 2026 at 560 million baht, up 5% from the previous year. In the rubber business, which is the most prominent factor, Trinity expects rubber sales volume in the third quarter of 2026 at approximately 60,000-70,000 tonnes, flat from the second quarter of 2026 but growing strongly compared with the same period last year. Meanwhile, block rubber selling prices are expected to rise to approximately 75-80 baht per kilogram, from an average selling price of about 70 baht per kilogram in the second quarter of 2026, supported by demand for block rubber in the Indian market after the Indian government announced an exemption on rubber import taxes, lower rubber output due to El Nino conditions, and higher crude oil prices, which pushed synthetic rubber prices up. For the crude palm oil business, Trinity estimates that sales volume in the third quarter of 2026 may slow seasonally, but prices still have supporting factors from demand for palm oil to increase the biodiesel blending ratio, and it expects sales volume to recover in the fourth quarter of 2026. The company itself is pressing ahead with increasing the share of EUDR-standard rubber products after the direction of the European Union's regulatory enforcement became clearer, as well as improving the efficiency of its palm business by repairing machinery and installing additional boilers and sterilizers, which is expected to help increase crude palm oil production capacity by about 50% within this year. As for the phase 2 biogas production capacity expansion project, it is under review of technology and budget, with the completion date adjusted to the second quarter of 2027.

Kasikorn Securities said in an analysis note following its KS C-Series event with STA management on September 30 that executives remain positive on the upcycle in natural rubber, expecting global rubber supply to stay tight through 2027-2028 as shrinking supply outweighs modest demand growth. STA expects Thailand's natural rubber output to fall about 5-12% year on year this year, hurt by heavy rain that disrupted tapping and by some farmers switching to oil palm. Indonesia's output is expected to drop by about 500,000 tons, or 25% year on year, while additional supply from Ivory Coast is seen at only about 200,000 tons, leaving net regional supply significantly lower. Management expects the average selling price of natural rubber to rise to about USD 2.3 per kilogram in the third quarter of 2026 and USD 2.5 per kilogram in the fourth quarter, from USD 2.1 per kilogram in the first half of 2026. It kept its 2026 rubber sales volume target at 1.5 million tons and its gross profit margin target for the natural rubber business at 8-9%, compared with 9.3% in the second quarter of 2026 and 8.7% in the first quarter. Sales of rubber meeting EUDR standards are expected to exceed 40,000 tons in the third quarter of 2026 and 60,000 tons in the fourth quarter, versus only 17,000 tons in the second quarter, though uncertainty remains over EUDR enforcement. At STGT, management expects production costs for rubber gloves to rise in the second half of 2026 on higher latex prices, with sales volume still uncertain. The research team maintained its Buy rating and 26.00 baht target price, based on a sum-of-the-parts method using a target price-to-earnings ratio of 8.5 times for the natural rubber business and a 13.00 baht target price for STGT. It said it prefers STA over STGT given the more positive second-half 2026 profit outlook.

North East Rubber Public Company Limited, or NER, is one of the rubber exporters with a customer base in both EUDR and non-EUDR markets, which are its main and strongly performing markets. Interest in NER shares remains unabated after the EUDR regulation in the European Union came into effect. As the EUDR-compliant goods market draws more attention, supply in the non-EUDR market will tighten accordingly, since some of the rubber demand is being diverted into the EUDR market. This will support rubber prices in the traditional market, allowing it to reap the full benefits of these factors. NER therefore stands to gain on both fronts.

Thai Eastern Group Holdings Public Company Limited, or TEGH, disclosed that it began stockpiling raw materials in advance since August 2026 to cope with heavy rainfall in the eastern and northeastern regions, which is expected to prevent rubber tapping at least through early October. The reserve volume is sufficient for production through the end of this year and also maintains continuity in delivering products to customers. Managing Director Sineenuch Kokanutaporn stated that the trend for the third quarter of 2026 is expected to improve compared with the second quarter of 2026, driven by weather conditions and rainfall levels, as well as clarity on the EUDR regulation, with orders currently coming in continuously. EUDR rubber sales this year are expected to exceed 30 percent before rising to 40 to 50 percent in 2027, in line with demand from leading global tire makers. Meanwhile, high selling prices will begin to be significantly reflected in earnings from late in the fourth quarter of 2026 through the first quarter of 2027. The energy and clean energy business continues to set new record highs, while the palm oil business is in a recovery phase amid prices holding at high levels, even though boiler installation has been delayed by legal procedures related to the Clean Air Act.

Sri Trang Agro-Industry Public Company Limited, or STA, is benefiting from rising natural rubber prices after heavy rain in growing areas tightened supply, pushing rubber prices on both the Tokyo and Singapore futures markets to high levels. An investor relations officer at STA told Than Hoon that if the EUDR regulation is not postponed from taking effect at the end of this year, the company is ready to immediately ramp up EUDR rubber production. The company expects sales of 30,000 to 40,000 tonnes in the third quarter of 2026, with the fourth quarter of 2026 doubling again to return to its historical average of about 60,000 tonnes per quarter, after sales of this type of rubber fell to about 17,000 tonnes in the second quarter of 2026, down from roughly 233,000 tonnes for all of 2025. Analysts at Bualuang Securities Public Company Limited estimate that third-quarter 2026 profit could soften compared with the second quarter of 2026 due to lower sales volume and gross profit from a high base, but they raised their SICOM TSR20 range for the second half of 2026 to 215 to 235 cents per kilogram from 190 to 220 cents per kilogram. Meanwhile, Finansia Syrus Securities Public Company Limited noted that the SICOM rubber price surged past 240 cents per kilogram, hitting its highest level in nearly 10 years, and recommended trading for profit with a target price of 23 baht.

Land and Houses Securities has initiated coverage on STA, or Sri Trang Agro-Industry, Thailand's leading natural rubber producer, with a Buy rating and a target price of 23.90 baht. The company holds roughly 35% market share and has production capacity of 3.72 million tonnes per year. The target price is based on a PER of 11.30 times, or 0.75 standard deviations above the five-year historical average, reflecting upward rubber price momentum, a recovery in gross margin, and forward EPS of 2.12 baht per share in 2027. It also expects a 2026 dividend of 1 baht per share, implying a dividend yield of about 4.8%. The research team forecasts normalised profit of 2.701 billion baht in 2026, up 734.3% from a loss of 426 million baht the previous year, driven by expected revenue of 128.517 billion baht, up 13.3%, and GPM expanding from 6.2% to 9.7%, under the assumption of an average full-year rubber selling price of 220 US cents per kilogram. For the third quarter of 2026, normalised profit is expected to grow year on year but decline quarter on quarter from the high base in the second quarter. The SICOM TSR20 rubber price rose to about 230 US cents per kilogram from 220 US cents per kilogram in the previous quarter, and EUDR rubber sales volume is expected to increase to about 30,000 tonnes from 17,214 tonnes in the second quarter, with more than 60,000 tonnes expected in the fourth quarter. The company continues to pursue a strategy of raising the share of EUDR rubber, which sells at a higher price than general rubber, targeting sales volume of 30,000 tonnes per month. Meanwhile, limited rubber supply from Indonesia and Ivory Coast, along with the effects of El Nino, leaf fall disease in Indonesia, and the reduction of rubber plantation area as land is converted to palm oil, are factors supporting rubber prices. China remains the main market, accounting for more than 60% of natural rubber business revenue, while the rubber glove business exports to more than 175 countries worldwide.

Analysts recommend a "Buy" on North East Rubber Public Company Limited (NER), with a highest target price of 6.50 baht per share, citing expectations of a strong recovery in second-half performance driven by higher rubber prices amid tight supply. NER is one of Thailand's block rubber producers expected to benefit from the EUDR measures in Europe once enforced. The company has already received EUDR rubber orders of about 2,000 tonnes and has about 10,000 tonnes ready for delivery. It targets EUDR rubber sales of about 40,000 tonnes per year, or no more than 10% of total sales volume. Current block rubber selling prices have risen to 77-80 baht per kilogram, following SICOM rubber prices hitting their highest level in over a decade. In Q3/2026, sales volume increased to about 120,000 tonnes, and GPM has a chance to stay above 10%, bringing normal profit closer to the previous peak of 619 million baht. For Q4/2026, if El Niño intensifies, sales volume may drop to about 110,000 tonnes, but it will still be supported by higher selling prices and GPM. Normal profit for the second half is expected at 1.0-1.1 billion baht, pushing full-year profit to potentially reach 1.8 billion baht, about 4% higher than estimates. Currently, NER trades at a low PER for 2026 of only 5.0 times, compared to TEGH and STA at 6.0 times and 12.7 times, respectively, offering a dividend yield of 7% per year. With a positive business outlook, the PER used in valuation is raised from 6 times to 7 times, increasing the end-2026 target price to 6.50 baht, with an upside gain of 40.1%. The "Buy" recommendation is maintained. Meanwhile, KGI Securities (Thailand) states the consensus target for NER is 5.40 baht, assessing that rubber prices have risen sharply to test a 9-year high due to El Niño. Consensus expects a dividend this year of 0.35 baht (dividend yield 7.6%). In the first half of 2026, 0.05 baht per share has already been paid, leaving 0.30 baht per share (yield 6.5%).

NER is moving full speed ahead to capture the EUDR rubber market after completing the mapping of cultivation areas. Mr. Chuwit Juengthanasomboon, Chief Executive Officer, revealed that over the past two weeks, orders for EUDR rubber from key customers in South Korea and China have been coming in continuously. The company aims to export 40,000 tons of EUDR rubber in 2027 and expects to export around 10,000 tons in 2026, as there are only about three months left before the end of the year. EUDR rubber yields a profit margin of approximately 10%, higher than regular rubber. Rubber prices remain high, with the company expecting an average price of 75 baht per kilogram for block rubber and 85 baht per kilogram for ribbed smoked sheets in late 2026. Sales for this year are already fully booked, with advance orders covering January to February 2027. For the third quarter of 2026, sales volume is expected to be similar to the second quarter at 110,000–120,000 tons. The company has not yet seen a clear impact from El Niño on rubber production.

NER is confident that rubber prices will trend upward and remain high for the next three years, due to declining global supply, especially from Indonesia where output has shrunk by nearly 10% as rubber trees are felled to make way for oil palm plantations. Meanwhile, heavy rain in Thailand is beneficial for rubber plantations, as it helps the soil retain moisture and keeps the trees healthy, even though tapping is temporarily halted. Mr. Chuwit Juengsombat, CEO of NER, revealed that Q3 2026 results will not fall short of targets, as forward sales contracts have already been secured. The company has also revised its 2026 sales volume target down to 440,000-450,000 tons from 500,000 tons, but maintains its revenue target of 30 billion baht and is accelerating customer base expansion in India. Meanwhile, Krungsri Securities recommends a buy with a target price of 5.30 baht.

TEGH has revealed that its plan to list its subsidiary, Thai Eastern Bio Power (TEBP), on the stock exchange is still moving forward, after the Securities and Exchange Commission (SEC) approved an extension of the IPO offering period. The company will consider the capital market conditions and various beneficial options, while also assessing the outlook for the second half of 2026, which remains positive due to increased rubber orders from India, Europe, and the United States, as well as the EUDR measures that are not expected to be postponed. As a result, revenue for 2026 is expected to grow by 10% to reach 22 billion baht, a new record high. The volume of rubber block sales is expected to be around 260,000 tons, up 4% from the previous year. Meanwhile, the crude palm oil business plans to increase production capacity by another 50% within this year, and the renewable energy business has a phase 2 biogas capacity expansion project that will add 297,000 tons per year of organic waste management capacity and 23.76 million cubic meters per year of biogas production capacity. For the second quarter of 2026, the company reported total revenue of 4.405 billion baht and net profit of 165 million baht, up 104% from the previous quarter.

The Ministry of Industry is accelerating the economic upgrade of five southern provinces—Songkhla, Satun, Yala, Pattani, and Narathiwat—by linking raw material bases to high-value processing, focusing on rubber, seafood, palm oil, bio-based, and halal industries to penetrate Malaysia, ASEAN, and Muslim markets. It will also use the Single Window and e-License systems to reduce business procedures. Data from the Office of Industrial Economics (OIE) shows that in the first six months of 2026, Satun's industrial index expanded by 26.5%, while Songkhla and Yala grew only 0.3% and 0.5% respectively. Narathiwat contracted 1.1%, and Pattani contracted 15.2%, while the South as a whole contracted 2.4%. Industry Minister Varawut Silpa-archa said development must connect large enterprises with SMEs, community enterprises, and farmers, from standards development, technology, processing, to market channels, so that local people benefit directly, and use Songkhla as a trade and logistics hub with Malaysia and ASEAN.

Yuanta Securities maintains a "Buy" recommendation on TEGH, or Thai Eastern Group Holdings Public Company Limited, expecting normal profit in Q3/69 to be around 190 million baht, up 19% quarter-on-quarter and 239% year-on-year. From the analyst meeting, the company expects sales volume in Q3/69 to be 65,000-70,000 tons, flat quarter-on-quarter but up 25-35% year-on-year. Meanwhile, average selling price is expected to rise about 8-10% from the previous quarter to around 75 baht per kilogram, or up about 27% from last year, supported by significantly increased orders from India after the Indian government exempted import duties on compound rubber from the previous 20%, and EUDR rubber orders resuming. The proportion of EUDR rubber is expected to increase to no less than 50% of total sales volume if there is no postponement of enforcement, with a long-term target to produce and sell all EUDR rubber. The research department also noted that profit estimates have upside risk as sales volume in 9M69 already accounts for 91% of the full-year estimate, while Q4/69 is expected to be similar to or higher than Q3/69. The company is considering adjusting dividend payment frequency from once a year to twice a year. Currently, the stock trades at only 6.0 times and 5.0 times PER for 2026-2027, respectively. Expected dividend for 2026 is 0.22 baht per share, representing a dividend yield of 7%. Target price is 4.00 baht, and it is recommended to reduce some weight in STA to increase weight in TEGH.

Rubber stocks rose against the market trend, with TRUBB up 5.83% to 1.09 baht, STA up 0.94% to 21.50 baht, and NER up 0.43% to 4.66 baht, following reports that rubber exports in July expanded for two consecutive months, +33.8% year-on-year, and +12.5% in June. Despite the first seven months still being down 9.4%. Kasikorn Securities recommends "Buy" on STA, maintaining a sales target of 1.5 million tons, and expects Q3/69 ASP at US$2.2-2.3 per kilogram. It also raised profit estimates for 2026-2028 by 40%, 16%, and 17% to 3.5, 3.4, and 3.7 billion baht, and raised the mid-2027 target price to 26.00 baht from 21.90 baht, citing tight supply from rains in Thailand and lower Indonesian output to support rubber prices.

Mr. Chuwit Juengsomboon revealed a major market restructuring plan for NER, reducing the export share from 80% to 30% and shifting to 70% domestic sales. This is due to Chinese tire factories relocating to Thailand to avoid the 50% increase in US import tariffs, benefiting NER through domestic sales to these factories. Meanwhile, the company is accelerating its penetration into the Indian market, which currently accounts for 5% or over 1 billion baht in value, aiming to increase this to 15% by raising production capacity by another 10% to a total of 560,000 tons to meet such demand. The company is also developing blended rubber to avoid China's 17% import tariff and rubber for EVs, which wear out 10% faster than regular vehicles. It is postponing European market expansion and the plan for a third factory due to limited production capacity and a slowing global economy. The rise in rubber prices from 40 baht to 70 baht per kilogram supports performance, with Q1 2026 expected to be the trough and Q4 the peak, aligning with the 2026 revenue target of 32 billion baht.

Yuan Ta Securities has a positive outlook on Sri Trang Agro-Industry (STA) after an analyst meeting. The company has lowered its 2026 sales volume target from 1.6 million tons to 1.45-1.50 million tons, in line with first-half sales of 700,000 tons, and expects the fourth quarter to be the highest sales quarter of the year. Meanwhile, it has raised its second-half selling price to 215-235 US cents per kilogram, up from the previous full-year average estimate of 190-220 US cents per kilogram. Rubber prices are expected to remain strong due to tight supply, especially in Indonesia, where output could fall 25% in 2026, and an El Niño event would further support prices. For EUDR rubber, there are early positive signs as customers resume orders, with third-quarter sales volume expected to rise about 100% from the previous quarter to 30,000-40,000 tons, and a further 10% growth expected in the fourth quarter. Normalized profit for the third quarter is estimated at around 800 million baht, recovering from a heavy loss in the same period last year but down from the second quarter due to customers delaying orders in anticipation of lower rubber prices. The research house maintains a Buy recommendation with a target price of 25.50 baht, based on 2026-27 PER of 11.3 times and 9.3 times, and a dividend yield of about 6%.

Trinity Securities has raised its target price for Sri Trang Agro-Industry (STA) shares to 24.60 baht from 23.00 baht, while maintaining a speculative buy recommendation. The firm expects the company to return to profitability in 2026, driven by higher natural rubber prices. The research department forecasts 2026 profit to increase to 2.6 billion baht from 1.9 billion baht, after raising gross margin assumptions on higher average selling prices. Sales volume for 2026 is projected at 1.45-1.50 million tonnes, down from 1.6 million tonnes, due to reduced supply from heavy rainfall, particularly in Thailand where output may decline by 5% and Indonesia by up to 25%. Meanwhile, natural rubber prices remain 20% cheaper than synthetic rubber, attracting glove and tire manufacturers to use more natural rubber, despite overall tire demand growing only 1-3%. The company also announced an interim dividend of 0.50 baht per share, with the XD date on August 27, 2026, representing a dividend yield of 2.8%.

Deputy Prime Minister and Minister of Commerce Supachai Suthamphan announced 90-day achievements and unveiled the next 7-step strategy, accelerating the conclusion of the Thailand–United States reciprocal trade agreement, or ART, and pushing 2026 exports to double-digit growth. In negotiations with the United States, Ms. Chotima Iamsawadikul, Director-General of the Department of Trade Negotiations, will travel in advance on 25 August 2026, before Ms. Supachai arrives on 30 August 2026, to speed up concluding the talks and safeguard trade benefits. On international trade, in the first six months of 2026 Thailand recorded total trade value of 425.23 billion US dollars, up 27.8 percent, with exports of 196.74 billion US dollars, up 17.6 percent, imports of 228.49 billion US dollars, up 38.0 percent, and a trade deficit of 31.74 billion US dollars. The Thai Helping Thai programme reduced public living costs by more than 818 million baht and generated over 2.9 billion baht in economic and trade value. Prices of several agricultural products improved, with cassava at 3.65 baht per kilogram, up 79 percent, oil palm at 8.70 baht per kilogram, up 45 percent, rubber at 36 baht per kilogram, up 30 percent, and feed corn at 7.28 baht per kilogram, up 6 percent. Integrated nominee problem-solving across 23 agencies inspected 46 areas in 13 provinces, reducing at-risk companies from 561 to 141, a decline of 75 percent.

Shenwan Hongyuan Research noted that the probability of a super El Niño event has recently risen to 95%, and extreme weather could significantly disrupt global agricultural supply. A strong El Niño will cause drought and lower output in major natural rubber and palm oil producing areas in Southeast Asia, while sugarcane production in India and Thailand will come under pressure, supporting expectations of higher sugar prices. Core blueberry producing regions in Peru and Chile also face output reduction risks, pushing prices higher in the fourth quarter. Historical experience shows that such climate events often reshape the supply and demand landscape for some tropical cash crops through weather premiums, thereby lifting inflation expectations. As of 10:41 a.m. on August 20, 2026, the China National Grain Industry Index tracked by the ChinaAMC Grain ETF was down 2.47%, but the ETF had seen four consecutive days of net capital inflows.

Northeast Rubber Public Company Limited, or NER, announced an interim cash dividend of 0.05 baht per share after its board approved the payment. The stock will trade excluding dividend on 20 August 2026, with payment on 4 September 2026. Chief Executive Officer Chuwit Jungtanasomboon said during the earnings call that the second-half performance outlook remains positive, supported by continued growth in global natural rubber demand, a key factor underpinning consistent growth and shareholder returns.

Thai Eastern Group Holdings Public Company Limited, or TEGH, reported second-quarter results for the fiscal year 2569 with total revenue of 4.405 billion baht and net profit of 165 million baht, up 104% from the previous quarter. The natural rubber business remained the main revenue driver, accounting for about 85% of total revenue, with revenue of 3.746 billion baht, down 5% from the previous quarter, but supported by average TSR20 block rubber prices on the SICOM market at 217.8 US cents per kilogram, up 13.7% quarter-on-quarter and 29.7% year-on-year. The company targets block rubber sales volume of 260,000 tonnes this year, up 4% from last year, and expects EUDR-compliant block rubber to account for 30–40% of sales in the second half. The crude palm oil business posted revenue of 566 million baht, up 35% quarter-on-quarter, and expects to increase production capacity by about 50% within this year. The renewable energy and organic waste management business recorded revenue of 90 million baht, up 37% quarter-on-quarter, with the phase-two project expected to be completed in the second quarter of 2570, adding biogas production capacity of about 23.76 million cubic metres per year. For the 2569 outlook, the company targets total revenue growth of 10% to reach 22 billion baht and is considering the timing for listing TEBP on the stock exchange through an IPO after the Securities and Exchange Commission approved an extension of the execution period.

Sri Trang Agro-Industry Public Company Limited, or STA, reported second-quarter 2026 net profit of 895 million baht, up 38.7 percent from the previous quarter and the highest level in four years. Revenue came in at 31.0038 billion baht, growing 15.5 percent from the previous quarter. As a result, first-half 2026 net profit reached 1.5404 billion baht, swinging from a loss in the same period last year, supported by high natural rubber prices and a pickup in customer restocking. The average TSR20 block rubber price on the SICOM market in the second quarter was 217.8 US cents per kilogram, up 13.7 percent from the previous quarter and 29.7 percent from a year earlier. The board of directors approved an interim dividend of 0.50 baht per share, with the stock set to trade excluding dividend on 27 August 2026 and payment scheduled for 11 September 2026.

Yuanta Securities recommends a Strong Buy on STA after the company reported second-quarter 2026 normalized profit of 1.142 billion baht, up 116% from the previous quarter and a turnaround from a normalized loss of 852 million baht in the second quarter of 2025. Net profit was 895 million baht. Revenue came in at 31 billion baht, up 15.5% from the previous quarter and 0.5% from a year earlier. The natural rubber business posted revenue of 24.883 billion baht, growing 16.5% from the previous quarter, driven by a 3% increase in sales volume to 354,210 tonnes and a 12.4% rise in average selling prices. The rubber gloves business recorded revenue of 6.104 billion baht, up 11.6% from the previous quarter. Although sales volume fell 6.6%, selling prices rose 17.8%. Overall gross margin was 12%, better than the expected 11.3%. The natural rubber business achieved a gross margin of 9.3%, the highest in seven quarters, while the rubber gloves business delivered 17.0%, the highest in four years for STGT. The company announced a dividend of 0.50 baht per share, with the ex-dividend date on August 27, offering a yield of 2.7%, which is better than the expectation of a single payment at year-end. Normalized profit in the third quarter of 2026 is expected to grow both from the previous quarter and from a year earlier, supported by higher rubber prices and a recovery in rubber glove sales volume. First-half normalized profit was 1.669 billion baht, representing 61% of the full-year estimate, with upside risk. The current share price trades at a 2026 price-to-earnings ratio of only 10.5 times and a price-to-book value of just 0.6 times. The company also holds assets that have not yet been revalued, such as carbon credits amounting to hundreds of thousands of tonnes of carbon.

Krungsri Securities stated that NER has lowered its 2026 sales volume target to 440,000 tonnes from 450,000 tonnes due to the impact of El Niño on rubber output, but has maintained its revenue target at approximately 30 billion baht, flat year-on-year, as higher selling prices offset the volume shortfall. For 2027, the company targets sales volume of 400,000 tonnes, down 10 percent year-on-year, amid persistently tight rubber supply, yet keeps its revenue target steady at around 30 billion baht, expecting higher average selling prices to compensate for lower volumes and support gross margin expansion. On the fundraising front, the company may seek loans or issue debentures in late 2026 to early 2027 to accommodate rising raw material costs, focusing primarily on cash flow management and not on capacity expansion in a tight supply environment. As of the second quarter of 2026, the company's debt-to-equity ratio stood at 1.1 times, and it maintains a full-year dividend payout ratio of 40 percent, with an interim dividend of 0.05 baht per share declared, representing a yield of 1.1 percent for the first half, with the XD date set for 20 August 2026. Krungsri Securities maintains a buy recommendation and a 2027 target price of 5.30 baht, with a neutral view on NER, as positives from higher selling prices and improving gross margin trends are offset by concerns over potentially higher interest expenses from fundraising, which are not yet factored into current estimates and remain uncertain in both amount and timing. For the third quarter of 2026, normalised profit is expected to recover both year-on-year and quarter-on-quarter, driven mainly by rising rubber selling prices, while gross margin is likely to expand due to the lag between immediate selling price increases and the slower adjustment of weighted average inventory costs.

Northeast Rubber Public Company Limited, or NER, has lowered its natural rubber sales volume target for 2026 to 440,000 to 450,000 tonnes, down from 500,000 tonnes, after assessing supply and market risks. However, it is maintaining its full-year revenue target at 30 billion baht, supported by higher global rubber prices. The gross profit margin in the second quarter improved to 10.24 percent from 8.62 percent in the first quarter, and the company expects it to remain in the 9 to 11 percent range in the second half. The company has decided to postpone construction of its third factory indefinitely due to concerns over the impact of the El Niño phenomenon, which could reduce rubber output in the first three quarters of 2027. It is also pushing into new export markets in India to replace the increasingly saturated markets of China and Singapore.

Northeast Rubber Public Company Limited, or NER, reported a second-quarter net profit for 2026 of 436.36 million baht, up from 254 million baht in the previous quarter. Total sales revenue came in at 7,143.58 million baht. Gross profit margin rose to 10.24 percent and net profit margin to 6.11 percent, reflecting effective cost management and price risk management amid high natural rubber prices. The board approved an interim dividend of 0.05 baht per share, with the XD date set for August 20 and payment on September 4, 2026. Management expects continued growth in the second half of the year, driven by tight global supply and strong demand for natural rubber.

The Commerce Ministry is preparing to push for 13 more key Thai export products, with a combined value of 4.95341 billion US dollars, to negotiate additional import tariff exemptions under Section 301 of the United States. Arada Fuangtong, Director-General of the Department of Foreign Trade, revealed that Thailand currently has 2,120 products exempted and not subject to the additional 12.5 percent tariff, accounting for more than half of Thai exports to the US. The 13 products to be proposed for additional exemptions represent 8.81 percent of total export value, covering handicrafts, pet food, rice, rubber gloves, processed seafood, and other consumer goods. Meanwhile, the Thai side has been scheduled for technical-level discussions in the negotiations on the Agreement on Reciprocal Tariffs, or ART, and expects that the US may raise the issue of structural overcapacity to pressure for faster negotiations, with possible clarity around September or early October.