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huat!
Huat Arh!!!
Maybank has just published a sector report on gloves manufacturer this evening. Riverstone presently trades at ~17x PE while peers trade at 24-41x PE, a clear valuation gap despite higher quality earnings ROIC is highest among peers at 18% and ROE of ~20%
extracts of the report as below for reference:
Possible sustained human-to-human transmission
The coronavirus has infected a total of 5 countries (China, Thailand, Japan, Korea, and US) and there is also a suspected case in Philippines. A total of c.300 cases and 6 fatalities were reported. According to World Health Organisation (WHO), the new Coronavirus may have sustained human-to-human transmissibility. Yesterday, it was reported that 15 medical workers at Wuhan have been diagnosed with coronavirsus.
May develop into a pandemic outbreak
Though the major airports have already tightened their screening measures, we note that the screening may not be able to pick up all the infected patients as the incubation period of the virus (between contracting of the virus and the onset of symptoms) is 6-10 days. Hence, we see high possibility of the coronavirus developing into a global pandemic outbreak.
Top pick: Top Glove
We believe the potential pandemic outbreak may spur global demand for gloves. During SARS (2002- 03) and H1N1 (2009-10), the global demand jumped by an average growth rate of 13%. In our stock universe, we think Top Glove would be the biggest beneficiary given its fastest capacity growth of 18% in CY20 (Kossan: 11%, Hartleaga: 9%) and relatively lower plant utilization rate of 85% (Kossan: c.85%, Hartalega: > 90%). We raise Top Glove to BUY (from HOLD) with a higher TP of MYR5.65 (+19%) as we raise our P/E target to 31x (from 26x being its +1SD to 5- year mean) and also roll forward valuation to CY21E. We keep Kossan at a BUY with a higher TP of MYR5.30 (+9%) as we roll forward our valuation year to CY21E (still based on unchanged 24x P/E target, +0.5SD to 5-year mean). Hartalega remains a HOLD with unchanged TP of MYR5.75 as it is already based on CY21E P/E target of 37x (+0.5SD to 5-year mean).
extracts of the report as below for reference:
Possible sustained human-to-human transmission
The coronavirus has infected a total of 5 countries (China, Thailand, Japan, Korea, and US) and there is also a suspected case in Philippines. A total of c.300 cases and 6 fatalities were reported. According to World Health Organisation (WHO), the new Coronavirus may have sustained human-to-human transmissibility. Yesterday, it was reported that 15 medical workers at Wuhan have been diagnosed with coronavirsus.
May develop into a pandemic outbreak
Though the major airports have already tightened their screening measures, we note that the screening may not be able to pick up all the infected patients as the incubation period of the virus (between contracting of the virus and the onset of symptoms) is 6-10 days. Hence, we see high possibility of the coronavirus developing into a global pandemic outbreak.
Top pick: Top Glove
We believe the potential pandemic outbreak may spur global demand for gloves. During SARS (2002- 03) and H1N1 (2009-10), the global demand jumped by an average growth rate of 13%. In our stock universe, we think Top Glove would be the biggest beneficiary given its fastest capacity growth of 18% in CY20 (Kossan: 11%, Hartleaga: 9%) and relatively lower plant utilization rate of 85% (Kossan: c.85%, Hartalega: > 90%). We raise Top Glove to BUY (from HOLD) with a higher TP of MYR5.65 (+19%) as we raise our P/E target to 31x (from 26x being its +1SD to 5- year mean) and also roll forward valuation to CY21E. We keep Kossan at a BUY with a higher TP of MYR5.30 (+9%) as we roll forward our valuation year to CY21E (still based on unchanged 24x P/E target, +0.5SD to 5-year mean). Hartalega remains a HOLD with unchanged TP of MYR5.75 as it is already based on CY21E P/E target of 37x (+0.5SD to 5-year mean).
weak :(
still waiting
still waiting
Flight from wuhan are still ongoing which will definitely cause more pneumonia outbreaks in countries. Mask production companies will soon rise cause of the demand. 👍 rise to 1.1
You are right. Today up 4 cents🤑
n3wbie ( Date: 06-Jan-2020 10:29) Posted:
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with the outbreak of the latest pneumonia, this can be a potential beneficiary given that they manufacture face masks and medical gloves. Medtecs is probably the first to have moved, quite an overlooked counter
Not on medical goods...
Alvin2042 ( Date: 10-Nov-2018 13:04) Posted:
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Export from their China factories to US market will be affected by tariff.
Wind22i ( Date: 10-Nov-2018 10:16) Posted:
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Gloves company shld be resilient ie not impacted by the trade war... ie.. top glove..
Very low volume. Takes a long time to climb. But drop can be quite fast.
bishan22 ( Date: 07-Nov-2018 16:23) Posted:
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Very STONED today......
This is a strange one.
You have machines adding and removing 100 shares from buy and sell queue repeatedly.
You have machines adding and removing 100 shares from buy and sell queue repeatedly.
someone controlling the price...not easy go up.
$1.09 reached and volume stayed above 300k shares.
The question now is whether it can go up another step ?
The question now is whether it can go up another step ?
Slowly slowly moves up to $1.07. Daily volume has also risen to above 300k shares as of now.
Riverstone to 1.09 Next
It seems there are never-ending sellings as well as good support at or around $1.03.
What is next ?
What is next ?
It's gross revenue and net income level has been increasing for past few years . A great growth company . Spore share blog
SMC Strategy (DBS)
Upside participation, downside protection
?h Earnings still key go for names with clear growth catalysts &ndash BreadTalk, Cityneon, mm2 Asia, and Riverstone
?h Keep a firm eye on growth and another on downside protection as small-mid caps have yet to recover from recent selldown
?h Steady dividends make good safety nets &ndash Chip Eng Seng, Hong Leong Finance, Riverstone, Sheng Siong, Sunningdale, and UMS
?h Trading cheap and ready to shine in 2018 &ndash China Aviation Oil, Delfi, Riverstone, and Roxy Pacific