Riverstone Holdings

[behappyalways]

Riverstone still sees strong 3Q results despite shift to 'endemic' Covid-19
https://www.theedgesingapore.com/news/r ... c-covid-19

[winston]

vested

Riverstone gets double take from analysts following 3Q2021 results

by Amala Balakrishner

DBS sees healthcare gloves stabilising at “around the US$30 range” in 2022.

ASPs for cleanroom gloves is slated to firmer, with prices hovering around the US$100 – 120 range since the start of this year.

Cleanroom gloves is making up 25% of its annual production volume.

Over 50% of the group’s earnings comes from this segment now, compared to around 70% before the pandemic.

The group is already planning ahead and looking for growth opportunities beyond the pandemic. One such move is to develop new and innovative product offerings in untapped markets such as food processing, pharmaceuticals and surgical glove segments.

Source: The Edge

https://www.theedgesingapore.com/capita ... 21-results

[winston]

vested

Riverstone Holdings (RSTON SP)
Trading Buy Range: S$0.700-0.710
Last price: S$0.705
Target price: S$0.820
Protective stop: S$0.655

The price correction was halted at the Fibonacci 50% of Dec 21-Jan 22’s rally.

The MACD is trading near its zero line and a bullish MACD crossover is likely in the coming session.

These could increase chances of the stock price continuing to move higher.

We see increasing odds of the stock price testing $0.82. Stops could be placed at S$0.655.

Approximate timeframe on average: 1-2 weeks(initiate this trade idea if the stock hits the entry price range within three trading days)

Our institutional research has a fundamental HOLD and target price of S$0.68.

Source: UOBKH

[winston]

vested

Riverstone doubles FY2021 earnings to RM1.42 billion, plans total dividends of 48 sen

Riverstone Holdings has reported earnings of RM1.42 billion for FY2021 ended Dec 2021, up 119.1%.

Revenue in the same period was up 68.5% to RM3.08 billion.

The company plans to pay a final dividend of 28 sen per share, a special dividend of 10 sen per share, bringing total FY2021 payout to 48 sen.

The company’s planned expansion of its production capacity to 1.5 billion gloves by end of 2021 has been delayed because of the pandemic to end of 2022.

It plans to increase its capacity by another 1.5 billion pieces by end of FY2023.

Source: The Edge Singapore

https://www.theedgesingapore.com/capita ... nds-48-sen

[behappyalways]

Just did a brief look at the company's result.

If you pull out the 3Q result and then work out the 4Q result, you will see....

3Q Revenue $652.8m
4Q Revenue $410.2m
2H Revenue $1063m

3Q Net Profit $266.4m
4Q Net Profit $110.8m
2H Net Profit $377.2m

3Q Net Profit Margin 40.8%
4Q Net Profit Margin 27%
2H Net Profit Margin 35.5%

If you annualised 4Q earnings, next year you will probably see a 50% to 67% drop in earnings....Just a rough estimate

[winston]

vested

Riverstone (RSTON SP): <Results First Take> FY21 broadly inline; bumper dividend declared [BUY, TP S$1.20]

FY21 results broadly inline; net profit surged 119% y-o-y on higher volume and ASP

Bumper dividend of total 48 sen; dividend payout ratio of 50%, similar to FY20

Demand for healthcare gloves improving but pricing pressures still persist; meanwhile, strong demand and stable ASP for cleanroom gloves providing earnings resiliency and sustainable growth for the group

Rising raw material prices to affect margins hereon, capacity expansion plans delayed

BUY call and S$1.20 TP under review

Source: DBS

[winston]

vested

Bumper dividends

FY21 results were in line with our expectations. Back-loaded dividend payout of 38sen/share (final + special dividend) represents c.15% yield.

Strong demand for cleanroom gloves supports elevated ASPs. Structural shift in product mix means cleanroom could contribute 76% of FY22F GP.

With RSTON’s prioritisation of cleanroom segment bearing fruit, we think its
earnings are more resilient vs. peers in the current environment. Retain Add.

TP: 1.10

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... F524BDDA1A

[behappyalways]

Not vested


Buyers beware....seems like a pump and dump case to me. The volume is exceptionally high

Just did a brief look at the company's result.

If you pull out the 3Q result and then work out the 4Q result, you will see....

3Q Revenue $652.8m
4Q Revenue $410.2m
2H Revenue $1063m

3Q Net Profit $266.4m
4Q Net Profit $110.8m
2H Net Profit $377.2m

3Q Net Profit Margin 40.8%
4Q Net Profit Margin 27%
2H Net Profit Margin 35.5%

If you annualised 4Q earnings, next year you will probably see a 50% to 67% drop in earnings....Just a rough estimate

[winston]

Buyers beware....seems like a pump and dump case to me. The volume is exceptionally high

I went back to check on my numbers:-

Net Cash is about RM 1.8b = Sin$580m (Exchange @ 3.10)

741m shares

Cash Per Share is Sin$0.78

Share price is Sin$1.06

FY 2021 Dividends are RM 0.48 = Sin$0.15 (Exchange @ 3.10)
Yield will be 14%

RM 0.28 Dividends going ex on May 4, 2022.

FY 2020 Dividend were RM 0.24 = Sin$0.096 (Exchange @ 3.10)
Yield @ Sin$1.06 was 7.8%

If they are able to really switch to 75% Gross Profits (vs 62% currently) from Cleanroom (ASP US$100 versus ASP US$25 for Healthcare), then their numbers would be quite good.

So what am I missing?

[behappyalways]

Sorry for the late reply. Just came back from lesson.

If you look at Riverstone's share price for the past few days, it went up a lot but there is no news that excite buyers. In fact if you look at my numbers, I think it will report not so attractive results for the next few quarters with part of the reason due to high base a year ago. Top Glove latest result further confirmed that coming results will not be good. To be honest, I would be very surprised if it does well...very surprised.

Hence what is the reason for the movement in share price? Because of the few cents dividend? If the company is not able to produce similar result as last year, most likely the present dividend payout is once off.

Personally I feel that price peak is when big boys are all in and they can work wonders on share price. So when there is no reasons for share price to go up so significantly and if one feels that the big boys are all in, it might be prudent to take action.

The big boys never fail to amazed me so if they want, they can push the share price much higher but I am of the view that with the results coming out for the next few quarters, the share price then will probably be lower than present

Just did a brief look at the company's result.

If you pull out the 3Q result and then work out the 4Q result, you will see....

3Q Revenue $652.8m
4Q Revenue $410.2m
2H Revenue $1063m

3Q Net Profit $266.4m
4Q Net Profit $110.8m
2H Net Profit $377.2m

3Q Net Profit Margin 40.8%
4Q Net Profit Margin 27%
2H Net Profit Margin 35.5%

If you annualised 4Q earnings, next year you will probably see a 50% to 67% drop in earnings....Just a rough estimate