North East Rubbers Public Company Limited

TQR reported second quarter 2026 net profit up 48.07 percent from the same period last year, and its board approved an interim cash dividend of 0.203 baht per share, with the XD date on 24 August 2026 and payment on 4 September 2026. Thai Eastern Group Holdings received a perfect score of 100 points at the excellent level for the third consecutive year in the 2026 annual general meeting quality assessment. Supalai received a perfect score of 100 points at the excellent level for the fourteenth consecutive year. Samo Thong Group posted second quarter 2026 revenue up 2.48 percent to 3.52 billion baht. North East Rubber announced an interim cash dividend of 0.05 baht per share, with the XD date on 20 August and payment on 4 September.

NER has announced an interim cash dividend of 0.05 baht per share, with the XD date set for 20 August and payment on 4 September. Chief Executive Officer Chuwit Jungthanasomboon said the outlook for the second half remains bright, driven by continued growth in global natural rubber demand, reflecting the company's position as a consistent dividend stock that delivers returns to long-term shareholders.

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.

Gulf Energy Development Public Company Limited, or GULF, reported a record-high operating profit of 12.3 billion baht in the second quarter of 2026, up 74% from the same period last year, driven by its energy business and share of profit from ADVANC. In the second half, it plans to start commercial operation of an additional 700 megawatts of power plants and targets 12-15% growth in total revenue and EBITDA this year. ADVANC announced a second-quarter 2026 profit of 13.7 billion baht, up 25%, with its 5G user base surpassing 19.7 million and an interim dividend of 8.69 baht per share. TRUE is still awaiting clarity on the China Mobile issue. OR swung to a loss of over 1.77 billion baht in the second quarter of 2026 due to inventory valuation losses from falling global oil prices, even though revenue grew to 205 billion baht and Cafe Amazon achieved record sales of 117 million cups. MEDEZE reaffirmed its leadership in stem cell banking with international standards. NER is confident that third-quarter 2026 results will recover in line with rubber prices, despite cutting its sales volume target to 440,000-450,000 tons while maintaining its 2026 revenue target of 30 billion baht. KUN reported first-half revenue of 278 million baht, up 40%, driven by demand for detached houses priced at 5 million baht and above. TEKA reported a 66.8% surge in first-half 2026 profit to 40.46 million baht, with revenue exceeding one billion baht. SYNEX announced a second-quarter 2026 net profit of 224 million baht, up 17.8%, and an interim dividend of 0.10 baht per share, with the XD date set for August 19. PCE is confident that the palm oil industry will be supported by global palm prices and B7-B20 policies. TMI is accelerating resolution of power plant issues and sustaining its lighting equipment business. SPVI is unfazed by Apple's iPhone price adjustments, noting that it supports margins through selling price adjustments. POLY is benefiting from TOYOTA's sales dominance in the Thai auto market, pushing the revenue share of its automotive group past 60%. ALPHAX is expanding into the Lao financial sector with digital transformation and AI. AURA is preparing to offer its first bond issuance of 2026 to expand its gold ornament sale-with-repurchase portfolio.

Northeast Rubber Public Company Limited, or NER, reported a second-quarter 2026 normalised profit of 447 million baht, up 47.2 percent from the previous quarter and 33 percent above analyst expectations. Net profit came in at 436 million baht. Total revenue was 7.144 billion baht, roughly in line with forecasts. Although sales volume fell to 108,000 tonnes, gross margin improved to 10.2 percent from 8.6 percent in the first quarter. Selling and administrative expenses declined due to a lower share of export revenue. The company announced an interim dividend of 0.05 baht per share, with the XD date set for 20 August. Yuanta Securities' research team expects third-quarter profit to continue growing both quarter-on-quarter and year-on-year. It maintains its full-year 2026 normalised profit estimate at 1.73 billion baht and keeps a target price of 5.60 baht, with a buy recommendation.

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%.

The European Union has classified Thailand as a low-risk country under the EU Deforestation Regulation, or EUDR. This means rubber importers from Thailand are eligible for Simplified Due Diligence and face random inspections at a rate of just one percent, which is lower than Indonesia and Malaysia. The move enhances the competitiveness of Thai rubber and rubber product exports while elevating the sustainability image of Thai goods. However, Thailand still needs to accelerate the development of traceability systems and smallholder farmer data to comply with the new rules. Kasikorn Securities noted this is positive for the rubber sector and exporters such as Sri Trang Agro-Industry, North East Rubber, and Thai Rubber Latex Group, as they stand to maintain their European market share and improve competitiveness under the new EUDR.

The Trade Policy and Strategy Office of the Ministry of Commerce reported that Thai exports in June 2026 reached 34.66 billion dollars, up 20.8 percent from the same month last year, extending growth for a 24th consecutive month and exceeding market expectations of 13.7 to 15.2 percent. Meanwhile, imports totaled 41.19 billion dollars, rising 50.3 percent, resulting in a June trade deficit of 6.53 billion dollars. For the first half of the year, exports amounted to 196.74 billion dollars, up 17.6 percent, and imports reached 228.49 billion dollars, up 38.0 percent, leading to a cumulative trade deficit of 31.74 billion dollars. Analysts at Yuanta Securities noted that the stronger-than-expected exports and the deficit are factors weighing on the currency, and highlighted five stock groups poised to benefit: rubber, which returned to growth of 12.5 percent after 14 months, supporting STA, NER, and TEGH; processed chicken, supporting GFPT, TFG, and CPF; pet food, which continued to grow 22.3 percent for a tenth straight month, supporting ITC and AAI; canned seafood, which resumed expansion at 17.5 percent, supporting TU; and electronic components, which accelerated growth, supporting SMT, CCET, KCE, and HANA.

Four brokers have assessed shares of North East Rubber, or NER, setting target prices between 5.00 and 5.40 baht per share, with most recommending a buy. They expect second-quarter 2026 earnings to recover from the previous quarter, supported by higher rubber selling prices. Yuanta Securities Thailand gives a target price of 5.40 baht, forecasting second-quarter normalised profit at 337 million baht, up 10.8 percent from the prior quarter but down 31.2 percent from a year earlier. Selling prices recovered faster than expected, lifting gross margin to 9.5 percent from 8.6 percent in the first quarter. Liberator Securities sets a target of 5.20 baht, projecting normalised profit of 407 million baht, a 34 percent increase from the previous quarter. Pi Securities gives a target of 5.05 baht, estimating second-quarter net profit at 361 million baht, up 42 percent from the prior quarter. Dao Securities Thailand maintains a hold recommendation and lowers its target to 5.00 baht, estimating second-quarter normalised profit at 445 million baht, up 46 percent from the previous quarter but still below expectations due to slowing sales volume. Most brokers expect continued growth in the second half, driven by high rubber prices. Yuanta forecasts a full-year dividend yield of 6.6 percent, while Pi keeps its full-year profit estimate at 1.555 billion baht.

Naruechon Damrongpiyawut, Chief Executive Officer of Gunkul Engineering, revealed that a subsidiary has signed power purchase agreements for three additional renewable energy projects with a total capacity of 57.2 megawatts, adding to the long-term revenue backlog and reinforcing the growth of the clean energy business as planned. Meanwhile, Chuwit Jungthanasomboon, Chief Executive Officer of Northeast Rubber, sees a positive second-half outlook from strong natural rubber demand in China and India, while global output is constrained by weather, keeping rubber prices likely to remain stable at appropriate levels. The company is therefore moving forward with tight cost and inventory management, targeting revenue of 32 billion baht in 2026. Pipat Sutthiwisesak, Chief Operating Officer of Kethis Bioethanol under Kaset Thai International Sugar Corporation, disclosed that the company has signed a contract to produce 99.95% pure alcohol for the Excise Department's Liquor Organization, marking another important step in expanding the business into the food, beverage, and pharmaceutical markets, increasing opportunities to generate revenue from value-added products in the future. Julia W. Petchpaisit, Chief Executive Officer of Panel Plus Matic Solutions, is confident that performance will begin to recover from the third quarter onward after the new factory reaches full capacity, enhancing production capability, with plans to penetrate the data center, medical business, and cleanroom markets to create a new S-curve, targeting revenue of 400 million baht within three years. Piti Tantakasem, Chief Executive Officer of TMBThanachart Bank, revealed that in the first half of 2026, the bank posted a net profit of 10.683 billion baht, with asset quality remaining stable and non-performing loans flat for seven consecutive quarters, while also completing a share buyback deal one year ahead of schedule, helping to enhance long-term shareholder returns. Chalerm Harnpanich, Chief Executive Officer of Bangkok Chain Hospital, disclosed that the company has signed a memorandum of understanding with Ratchavej Ubon Ratchathani Company Limited to study the feasibility of investing in expanding the hospital network to Ubon Ratchathani province, serving patients in the area, the lower northeastern region, and neighboring countries, with a conclusion expected within the third quarter. Finally, BCPG reported that electricity sales volume in the second quarter of 2026 declined due to scheduled maintenance shutdowns of natural gas power plants in the United States. However, the renewable energy business in Thailand and Laos still helped support the overall picture well, from hydropower, solar, and the Monsoon wind project, which began recognizing full-quarter revenue, reflecting that the revenue base from renewable assets continues to play an important role in driving the company's growth.

Northeast Rubber, or NER, has set a 2026 revenue target of 32 billion baht, supported by sustained strong demand for natural rubber in the tyre industry, especially in China and India, despite global economic uncertainty. Chief Executive Officer Chuwit Jungthanasomboon said the company will continue to manage costs and inventory efficiently while hedging raw material risks to cope with market volatility, using a matching order strategy to align raw material purchases with product sales. Meanwhile, natural rubber output in several countries remains constrained by erratic weather and the El Niño phenomenon, keeping rubber prices at levels conducive to business operations.