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Likely this week i think ..
furnaces ( Date: 11-May-2020 13:50) Posted:
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Earnings result coming?
I think UOB start covering Riverstone and issued a BUY call.
Riverstone and UG are glove manufacturers based in Malaysia and have little updates over the years.
Their PE are trading substantially lower than Malaysian listed companies although they are selling the same stuffs. DYODD.
Recent pandemic brought them into limelight and ppl are seeing good value. Both are profit making and give out dividends.
The higher US dollars and lower oil prices should benefit these companies.
With the Covid19 induced demands, the ASP will be much higher as well.
Expected very good results this year onward.. Cheers.
--------------------------------
INITIATE COVERAGE
Riverstone Holdings (RSTON SP)
BUY | Price/Tgt: S$1.21/S$1.46 | Mkt Cap: S$896.7m
Beneficiary Of Industry Tailwinds From COVID-19
A leading global supplier of high-tech nitrile cleanroom gloves, Riverstone
has a dominant share of the hard disk drive market. It also manufactures
customised nitrile healthcare gloves. With consistent capacity expansion,
Riverstone is set to benefit from favourable industry tailwinds from the
COVID-19 pandemic and growing middle-income affluence. Given its attractive
48% discount to its peers& rsquo FY20 PE, we initiate coverage with BUY and a
PE-based target price of S$1.46.
· Global leader in nitrile cleanroom glove market. Riverstone Holdings
(Riverstone) specialises in the production of nitrile cleanroom gloves,
capturing a 60% global share of the hard disk drive market. As the
production of cleanroom gloves requires high levels of technical
capabilities, Riverstone& rsquo s customised nitrile cleanroom gloves command
ASPs that are 2.5-3.0x higher than that of nitrile healthcare gloves.
Riverstone& rsquo s cleanroom segment has been growing at double digits annually.
With the company& rsquo s proven track record, we believe this trend will
continue with Riverstone securing more orders.
· Capacity expansion to drive revenue and profits. Riverstone has a
newly-completed glove factory under phase 6 of its expansion plans,
boosting production capacity to 10.4b pieces/year by 1H20. Current
utilisation rates stand at 90-95%. Management has purchased land for phase
7-9 of its expansion plans. Phase 7 and 8 are expected to commence in 2020
and 2021 respectively, adding 1.4b pieces/year each and increasing total
capacity by 46.7% by 2022. In view of the higher capacity and favourable
tailwinds, we reckon the commissioning of these new production lines would
help boost Riverstone& rsquo s earnings.
· Changing demographic and macroeconomic trends to lift nitrile
healthcare gloves demand. Besides the ongoing COVID-19 pandemic, ageing
populations, rising middle-income affluence and greater health awareness
have contributed strongly to an increase in demand for healthcare gloves.
Developing countries such as China and India have low glove usage per
capita, implying huge potential in these countries. As Southeast Asia
contributes almost a third of Riverstone& rsquo s revenue, the company stands to
benefit from the rising living standards in these highly-populated
developing countries.
· Initiate coverage with BUY and PE-based target price of S$1.46,
pegged at 22x 2020F PE, a 38% discount to the sector& rsquo s 35.2x 2020F PE. The
discount is based on Riverstone& rsquo s 5-year average historical PE discount vs
the top 3 glovemakers& rsquo . The stock is currently trading at 18.2x 2020F PE.
We think this is unjustified as Riverstone has higher EBITDA margins, ROE
and dividend yield than peers, and comparable to that of industry leader
Hartalega.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=56559& h=65bfcef588bc2037bf4cbc685e7138c0
Riverstone and UG are glove manufacturers based in Malaysia and have little updates over the years.
Their PE are trading substantially lower than Malaysian listed companies although they are selling the same stuffs. DYODD.
Recent pandemic brought them into limelight and ppl are seeing good value. Both are profit making and give out dividends.
The higher US dollars and lower oil prices should benefit these companies.
With the Covid19 induced demands, the ASP will be much higher as well.
Expected very good results this year onward.. Cheers.
--------------------------------
INITIATE COVERAGE
Riverstone Holdings (RSTON SP)
BUY | Price/Tgt: S$1.21/S$1.46 | Mkt Cap: S$896.7m
Beneficiary Of Industry Tailwinds From COVID-19
A leading global supplier of high-tech nitrile cleanroom gloves, Riverstone
has a dominant share of the hard disk drive market. It also manufactures
customised nitrile healthcare gloves. With consistent capacity expansion,
Riverstone is set to benefit from favourable industry tailwinds from the
COVID-19 pandemic and growing middle-income affluence. Given its attractive
48% discount to its peers& rsquo FY20 PE, we initiate coverage with BUY and a
PE-based target price of S$1.46.
· Global leader in nitrile cleanroom glove market. Riverstone Holdings
(Riverstone) specialises in the production of nitrile cleanroom gloves,
capturing a 60% global share of the hard disk drive market. As the
production of cleanroom gloves requires high levels of technical
capabilities, Riverstone& rsquo s customised nitrile cleanroom gloves command
ASPs that are 2.5-3.0x higher than that of nitrile healthcare gloves.
Riverstone& rsquo s cleanroom segment has been growing at double digits annually.
With the company& rsquo s proven track record, we believe this trend will
continue with Riverstone securing more orders.
· Capacity expansion to drive revenue and profits. Riverstone has a
newly-completed glove factory under phase 6 of its expansion plans,
boosting production capacity to 10.4b pieces/year by 1H20. Current
utilisation rates stand at 90-95%. Management has purchased land for phase
7-9 of its expansion plans. Phase 7 and 8 are expected to commence in 2020
and 2021 respectively, adding 1.4b pieces/year each and increasing total
capacity by 46.7% by 2022. In view of the higher capacity and favourable
tailwinds, we reckon the commissioning of these new production lines would
help boost Riverstone& rsquo s earnings.
· Changing demographic and macroeconomic trends to lift nitrile
healthcare gloves demand. Besides the ongoing COVID-19 pandemic, ageing
populations, rising middle-income affluence and greater health awareness
have contributed strongly to an increase in demand for healthcare gloves.
Developing countries such as China and India have low glove usage per
capita, implying huge potential in these countries. As Southeast Asia
contributes almost a third of Riverstone& rsquo s revenue, the company stands to
benefit from the rising living standards in these highly-populated
developing countries.
· Initiate coverage with BUY and PE-based target price of S$1.46,
pegged at 22x 2020F PE, a 38% discount to the sector& rsquo s 35.2x 2020F PE. The
discount is based on Riverstone& rsquo s 5-year average historical PE discount vs
the top 3 glovemakers& rsquo . The stock is currently trading at 18.2x 2020F PE.
We think this is unjustified as Riverstone has higher EBITDA margins, ROE
and dividend yield than peers, and comparable to that of industry leader
Hartalega.
Click on the link for details.
https://research.uobkayhian.com/content_download.jsp?id=56559& h=65bfcef588bc2037bf4cbc685e7138c0
Tonight annoucement? Price surge so much. Must be news coming tonight
Wow, Riverstone now catching up 13.3% .. UG next soon.
Medical related companies no brainers.
Hold longer for at least 2 qtrs! Cheers
Mid Week. Staying vested.
n3wbie ( Date: 10-May-2020 22:39) Posted:
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Riverstone and UG not moving up with Medtecs and Top Glove as yet.
Results will be very good like Medtecs this year and next..
Expect a profit spike and hit past high in 2016..
This company PE looks more reasonable than other med stocks. vested.
Sold. 35% profit
Sgvale ( Date: 01-May-2020 20:58) Posted:
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Sorry when' s the briefing?
JY0064 ( Date: 10-May-2020 20:43) Posted:
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I wish for sgd0.50/share price appreciation after the mid-of-the-week biz briefing by the CEO. Crossed.
n3wbie ( Date: 10-May-2020 20:39) Posted:
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Think last high was $1.30, let' s hope it breaks that to hit new highs
lovetoshare ( Date: 10-May-2020 16:03) Posted:
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Riverstone break own high....might go higher.
Another lovely news from WHO for longists https://www.cnbc.com/2020/05/04/remdesivir-coronavirus-treatment-who-to-talk-with-us-on-making-drug-available.html
A lovely news for longists https://www.channelnewsasia.com/news/world/israel-isolates-covid-19-coronavirus-antibody-breakthrough-12702590
Boss said his automated machineries are running as fast as could to meet market demand. Unless his machineries now breakdown, you won't see below $1
90Cents
114
yoyo$$ ( Date: 01-May-2020 17:21) Posted:
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wat is the good entry price ?
Stabilising these few days. Chiong any time. Sell US, they are desperate in need