I noticed that the share of Riverstone has recently been affected, without much justification, by the movement of some of the glove counters  in Bursa. 

To me, Riverstone has a clear differentiation  :

 

1. They are the market leader in the high-end cleanroom  gloves segment with more than 50% global market share. 

2. While the ASP of healthcare glove is normalising, cleanroom glove pricing continues to be stable  around $100. They  are negotiated quarterly or half-yearly.

3. Differentiation - During the Covid period, while their competitors switched out of cleanroom gloves to healthcare gloves, Riverstone continue to commit and expand their cleanroom glove business. They are now rewarded for their vision.

4. Net profit - The net profit for 1H2021 is RM1.04 billion. Based on the recent report  by DBS, the full year net profit is RM1.342 billion. Looks conservative to me. But let' s see when they announce the Q3 result next month.

5. Dividend - Based on a  50% dividend payout ratio, we can expect an attractive dividend yield in the region of 13%.

 

Share prices can go  up and down. But if  we  base  on the TP of $1.28 by DBS in early October 2021, there is a upside potential of about 45%. (based on current price of $0.88)

***DYODD***

Fri, Oct 22 20211:16 AM