North East Rubber Public Company Limited (NER) signaled for an outstanding 3Q20 performance, thanks to higher orders, especially from Chinese customers, and the increase in production capacity from its new factory, along with the higher rubber prices which would benefit its sales to record 350,000-360,000 tonnes. Meanwhile the revenue is expected to reach 17 billion baht. The analyst recommended “BUY” with a target price at ฿5.00/share in response to NER’s new business – pet mat – to support its sales.
Mr.Chuwit Jungtanasomnoon, Chief Executive Officer of NER, revealed that the Company’s operating performance, in 3Q2020 the trend is toward growing when compared to a year earlier, due to the increase in orders from customers, particularly in China. Moreover, NER has already recognized the income from STR and mixtures rubber with the production capacity of 172,800 tonnes per year since June 6, 2020.
NER affirmed an outstanding year 2020 performance, benefiting from continuous higher rubber prices. Meanwhile expecting its sales to record 350,000-360,000 tonnes equivalent to 17,000 million baht, with a production capacity of 465,000 tonnes per year.
In the matter of pet mat made from rubber business progress, NER is waiting for orders from Taiwan. As soon as international flights are back on operation, NER will immediately resume its manufacturing.
Maybank Kim Eng (Maybank) stated that in 2020 NER will post a net profit of 959 million baht, an increase of 112% year-on-year, and will record 1,378 million in profit baht for the year 2021, rising 44% when compared to 2020. Recommending “BUY” with a target price at ฿5.00/share.