Share of Northeast Rubber Plc (NER) rose by 9.28 percent to 4.24 baht per share on Monday, an increase of 0.36 baht, with a transaction value of 1.189 million baht.
This marks the second consecutive day that NER shares have surged. It was the most active stock so far on Monday. On Friday, the stock closed with an increase of 15.48 percent with a trading value of 2,072.7 million baht.
The company produces and distributes ribbed smoked sheet (RSS), standard rubber (STR) and mixed rubber to manufacturers in the automotive industry in the domestic and overseas market.
Analysts have a positive outlook on NER with the company seen as likely to grow until the remainder of the year especially due to demand from China.
“Auto-tires manufacturing in China has resumed its production after recovering from the COVID-19 outbreak and there is an upside to the high price of block rubber at 43-45 baht per kg,” said an analyst from KTB Securities.
Maybank Kim Eng noted that the average net profit margin of NER was at 4.70 per cent which is higher than the five-year average of the rubber giant Sri Trang Agro (STA) at 1.20 per cent.
NER is expected to successfully expand its businesses and gain a net profit of 959 million baht in 2020 (up 112 per cent year-on-year) and 538.88 million baht in 2021 (up 44 percent year-on-year).
KTB rates ‘Buy’ on NER at the target price of 4.10 baht per share, while Maybank Kim Eng set the ‘Buy’ price at 5 baht per share.