Riverstone    Last:0.885    -0.01

RIVERSTONE HOLDINGS LIMITED

Business Strategy & Future Plans

Our business strategy and future plans for the growth and expansion of our businesses are described below:-

We plan to expand our production facilities

As at the Latest Practicable Date, we have seven dipping lines located at our Malaysian facilities and two dipping lines at our Thai facility. In addition, two new dipping lines in Malaysia are expected to be ready for use towards the end of 2006. We plan to upgrade our facilities in Malaysia by increasing the number of cleanrooms for laundry and packaging of our products and installing additional cleanroom plant and equipment. In relation to our Thai subsidiary, we intend to install an additional dipping line, increase the number of cleanrooms and upgrade our facilities by adding additional floor space to house additional plant and equipment. We also plan to expand and upgrade the production facilities of Riverstone Industrial Malaysia and Riverstone China.

We intend to continue our focus on product development

We are committed to producing cleanroom products that meet both the strict requirements of the cleanroom market and also the varying specifications of our customers. We intend to continue to focus on research and development and product development to ensure that our products meet the evolving and stringent requirements of the cleanroom industry.

We plan to expand the range of our products to include cleanroom nitrile gloves with better ESD properties. We also intend to develop gloves with lower content of ions which are used in extremely sensitive environments.

We intend to expand our range of packaging materials to include moisture barrier bags, static-shielding bags and ESD bags to better support our customers in various industries.

We intend to enhance our value-added services

We intend to maintain our long-standing relationship with our customers by providing more value-added services such as technical support and responsive after-sales services. For instance, we plan to provide more comprehensive, in-coming certification testing for customers on their cleanroom products.

To enhance our customers' quality control procedures, we intend to make available our current electronic reports on the quality of our products to a larger number of customers.

We also intend to extend the provision of our glove reconditioning services to a larger number of our customers.

We plan to enhance our production processes

We plan to invest in more advanced technology to enhance our production process. Through upgrading our existing production, laboratory-testing and research and development facilities, we believe that we would be able to keep abreast of industry trends and meet the evolving demands of our customers.

We plan to invest in information technology and management information systems to better manage our manufacturing processes and to improve the procurement of raw materials and the utilisation of resources for our business.

We intend to penetrate new industries, expand sales network and enhance brand awareness

Expansion into other industries

We plan to strengthen our market position by building relationships with existing customers in the HDD and semiconductor sectors within the electronics industry through joint efforts in product development, participating in exhibitions and publishing advertisements in trade publications. We also intend to extend our products to prospective customers in other industries such as flat panel display, medical device technology, biotechnology, pharmaceutical and aerospace industries through marketing efforts such as the development of sales channels through the appointment of sales agents who are familiar with such industries.

Geographical expansion

We currently have a network of international sales offices in Singapore, Malaysia, Thailand, the Philippines, the PRC and the US to market our products. We intend to penetrate new geographical markets by expanding our presence in China and penetrating new markets in Vietnam, India, Eastern Europe and South America by setting up offices close to potential customers in these places.

Building and leveraging on our brand name

We plan to leverage on our " RS Riverstone Resources" brand name to further increase our sales of cleanroom gloves to potential customers in the HDD and semiconductor sectors as well as other industries such as the flat panel display, medical device technology, biotechnology, pharmaceutical and aerospace industries. We plan to develop and/or market other cleanroom consumable products, such as cleanroom clothing and special wipes, in the HDD and semiconductor sectors as well as other industries.

To increase the brand awareness of our " RS Riverstone Resources" brand, we also intend to participate in exhibitions, advertise in trade publications and provide updated information on our products and services on our website.

We intend to grow our business through joint ventures and acquisitions

We intend to leverage on our international sales network to tap into cross-border business opportunities, penetrate into new markets and explore investment opportunities through acquisitions, investments, strategic alliances and/or joint ventures with suitable strategic partners. We will also explore opportunities to expand our manufacturing operations into other countries that will provide us with competitive advantages primarily in terms of servicing our customers' needs as well as other locational benefits.

 

DBSV downgraded to Hold, TP revised downwards to $1. if USD continues to strengthen against MYR then there might be a case for re-rating.

Excerpt:

Riverstone Holdings&rsquo lacklustre 1Q16 earnings (+0.6% y-o-y to RM27.2m) is expected to continue into 2Q. Unfavourable mix shift towards more healthcare gloves offsets capacity growth in 2016. We reduce FY16F/17F earnings by -15/- 20% on a combination of lower USD/MYR forecasts, higher healthcare glove output mix (which carries lower margins) and slightly lower healthcare glove margins, and also revise target valuation multiple from 18x to 16x blended FY16/17F PE to account for lower earnings growth. Downgrade to HOLD TP lowered to S$1.00 (Prev S$1.30).   

Qanghoo      ( Date: 11-May-2016 22:04) Posted: Think I read that DBSV also downgrade .... Rubber px up abt 50% from end 2015.  Margin will be adversely impacted? sunview      ( Date: 09-May-2016 11:00) Posted: CIMB has also downgraded the stock from HOLD to REDUCE, with a lower  target price of $0.91 (from $1.07)

 

Think I read that DBSV also downgrade .... Rubber px up abt 50% from end 2015.  Margin will be adversely impacted?

sunview      ( Date: 09-May-2016 11:00) Posted: CIMB has also downgraded the stock from HOLD to REDUCE, with a lower  target price of $0.91 (from $1.07)

 

TA - the counter is finding strong support around fibonacci retracement level of 88c. 

FA - USD has appreciated almost 5.5% against MYR over the last 3 weeks, since hitting a low of 3.83 on 19 Apr to 4.04 today. with reference to the company' s annual report, the FX sensitivity is (1% fluctuation in USD/MYR has a 0.7% impact on the PBT), so this could potentially bode well for the glove manufacturers in 2Q16. 

some of the peers such as Top Glove, Kossan have also seen share price recovering with appreciation of USD/MYR. worth a look after the recent share price correction though I suspect it would be trading range-bound for a while.
 

 

CIMB has also downgraded the stock from HOLD to REDUCE, with a lower  target price of $0.91 (from $1.07)

 

Riverstone&rsquo s 1Q16 net profit came in flat yoy.

UOB-KH has downgraded the stock to HOLD and the target price from $1.23 to $0.98.

The stock has broken below last low of $0.935 and is trading now at $0.895, quite close to the recent  low of $0.885 in Feb. The brokerage has warned in its Traders' Corner that technically the stock could potentially drop to as low as $0.80 in the short term.

Just watch out. It is May, but will the proposed secondary listing of Top Glove said to be before the first half of the year provided some twist. Will just have to wait and see.

 

Riverstone was making a comeback in the last 2 days after finding support at 0.95/0.96. Now it is approaching the recent highs at 1,02/1.03 resistance zone. Now $1.01. Interesting to see how it goes from here.

 

Creeping up slowly.

 

 

 

seems like going back to $1 soon

1oopls      ( Date: 23-Feb-2016 21:26) Posted: Reached $1 , congrats

 

Reached $1 , congrats

 

:) i can show u the chart but i cant snipe it here.

 

thank you buddy.

1oopls      ( Date: 16-Feb-2016 13:21) Posted: the selling is not as furios as before. you can cut if it falls below 5% of your invested capital. May have a short term rebound.

 

there seems to be strength in USD/MYR today, all the glove manufacturers rebounded off their lows including those peers listed in Malaysia. 

 

the near term volatility with the USD/MYR FX in addition to market volatility are some reasons why the counter is declining. that being said, the glove manufacturers in general are trading at relatively rich valuations compared to many other companies with PE multiple in excess of 15-20 and PB above 3-4x. it is also not surprising if funds/investors are taking profit off the counter given that it outperformed the market over the last two years.

 

the selling is not as furios as before. you can cut if it falls below 5% of your invested capital. May have a short term rebound.

 

i already warned shortists targeting this counter. 

 

Hello, anyone got any news why this counter keeps going down when entire markets are up...? stuck with this [email protected].. dont know whether to cut loss or keep? please advice

 

I tend to think though that the ringgit is undervalued n vice-versa for the USD.  Now with USD correcting, n Ringgit might appreciate too if oil px improves, n the political punch ups recede, this competitive advantage wld narrow. 

n3wbie      ( Date: 12-Feb-2016 13:13) Posted: also, read from Maybank' s latest update report on the glove manufacturers that USD/MYR remains in their favour as they book bulk of their sales in USD with costs denominated in MYR.

 

also, read from Maybank' s latest update report on the glove manufacturers that USD/MYR remains in their favour as they book bulk of their sales in USD with costs denominated in MYR.

 

Yep, if we take 2.60 as the peak, ante-bonus, then px shd be around 1.25.  So, abt 25% down.  See what the next rpt card will show .....

n3wbie      ( Date: 12-Feb-2016 12:26) Posted: any thoughts about this counter? seems to have retreated quite a fair bit from its peak, strong fundamentals and good growth from the increase in production capacity. company has no debt, margin of safety play?