Riverstone Holdings

 

Between Nov 10 and 12, Riverstone Holdings executive chairman and chief executive officer Wong Teek Son acquired 170,000 shares of the listed company for a consideration of S$262,600.

 

At an average price of S$1.54 per share, this increased his total interest in Riverstone Holdings from 51.10 per cent to 51.12 per cent.

 

Mr Wong is the founder of Riverstone and was appointed to the board as executive chairman on Aug 3, 2005. His executive responsibilities include developing business strategies and overseeing the group' s operations.

 

Riverstone Holdings' 1:1 bonus issue had its ex-date on Nov 9, resulting in a measured share price change from S$3.70 at the close on Nov 6 to an open of S$1.93 on Nov 9.

 

A corporate presentation/business update on Nov 10 detailed that for its 9MFY20 (ended Sept 30), revenue had grown to RM449.4 million (S$147 million), compared to RM 146.3 million for 9MFY19.

 

This brought its 9MFY20 net profit to RM 316.2, a 222 per cent increase year-on-year.

 

The company also maintained its plan to increase capacity by 1.5 billion pieces of gloves every year, its resilient balance sheet and net cash position, and continued ability to generate positive operating cash flow.

 

Furthermore, Riverstone Holdings highlighted a feature which distinguishes it from its competitors.

 

It has two main sources of revenue, namely, it makes its own brand hi-tech cleanroom gloves that are sold directly to end-users, and in addition, it also produces healthcare gloves that attract consistent demand that is resilient to changing market conditions.

 

The company also expects that average selling prices of both healthcare and cleanroom gloves will continue trending upwards due to strong demand.