Riverstone Holdings

Re: Riverstone Holdings

Postby winston » Thu Feb 27, 2020 9:42 am

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Robust growth ahead

4Q19 net profit of RM32m (-10% qoq, -3% yoy) was a slight miss, mainly due to higher tax expenses.

RSTON should see a much stronger FY20F, with robust demand for both its healthcare and cleanroom gloves.

We forecast 20.6% EPS growth in FY20F (FY19: 0.6%).

Reiterate Add with an unchanged TP of S$1.30 (based on 5-year historical average P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3E88864913
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Re: Riverstone Holdings

Postby winston » Fri May 08, 2020 10:44 am

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Riverstone Holdings (RSTON SP)
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’ FY20 PE, we initiate coverage with BUY and PE-based target price of S$1.46.

Source: UOB

https://research.uobkayhian.com/content ... bb28cbe281
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Re: Riverstone Holdings

Postby winston » Tue May 12, 2020 8:07 am

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BRIEF-Riverstone Holdings Posts Q1 Net Profit 46.6 MLN RGT

May 11 (Reuters) - Riverstone Holdings Ltd :

* Q1 NET PROFIT TO EQUITY HOLDERS 46.6 MILLION RGT VERSUS30.2MILLION RGT

* QTRLY REVENUE 279.4 MILLION RGT VERSUS 240.5 MILLION RGT

* GROUP'S EXPANSION PLANS ON TRACK TO LIFT CAPACITY BY UP TO 1.4 BILLION TO 10.4 BILLION PIECES OF GLOVES PER ANNUM BY Q4

Source: Reuters
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Re: Riverstone Holdings

Postby winston » Wed May 13, 2020 10:03 am

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Supply shortage driving price increase

RSTON reported robust 1Q20 net profit (+45% qoq, +54% yoy) on the back of stronger-than-expected margin expansion.

RSTON is seeing extended order backlogs amid a global glove shortage. We believe more price hikes are likely in FY20F, which could boost margins.

We raise our FY20-22F EPS forecasts by 18.5-33.2%. Reiterate Add, with a higher TP of S$1.86 (19.3x CY21 P/E).

Source: CIIMB

https://rfs.cgs-cimb.com/api/download?f ... F0B70620EF
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Re: Riverstone Holdings

Postby winston » Wed May 13, 2020 10:33 am

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Riverstone Holdings (RSTON SP)
1Q20: Strong Beat; Expect Stronger Quarters Ahead From ASP Hike

1
Q20 net profit beat our forecast by 6%, meeting 31% of our full-year estimate.

Both HC and CR glove segments recorded strong mid-teen revenue growth and are starting to
enjoy the benefits of the COVID-19 outbreak as well as lower raw material costs.

Given that ASP hikes would only start in May 20, we expect stronger net profit for 2Q20 and
beyond.

We raise our 2020 EPS by 37%, and PE-based target price by 47% to S$2.15 (based on a higher 23.7x FY20 PE). Maintain BUY.

Source: UOBKH

https://research.uobkayhian.com/content ... 65d121d970
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Re: Riverstone Holdings

Postby winston » Wed May 13, 2020 1:22 pm

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What’s New

Stellar 1Q20 performance, above expectations

Benefitting from COVID-19, expect remaining three quarters to be strong on higher ASP and robust
demand

Raise earnings for FY20F/FY21F by 27%/19% to account for higher ASP and margins

Maintain BUY with higher TP of S$2.20

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fdjbfkhea
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Re: Riverstone Holdings

Postby winston » Thu May 14, 2020 7:58 pm

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Riverstone's gloves remains a hot investment to wear and invest in, say analysts


by Amala Balakrishner 13/05/2020

SINGAPORE (May 13): Earnings of Malaysia-based glove and face mask manufacturer Riverstone Holdings soared 54.3% to RM46.6 million ($15.2 million) in 1Q20, from RM30.2 million a year ago, reinforcing that protective health gear are now the hottest investment property.

Revenue for 1Q20 correspondingly increased 16.2% to RM297.4 million from the RM30.2 million recorded in 1Q19, following robust global demand for healthcare products amid the Covid-19 pandemic.

A further boost in earnings came from a downtrend from the prices of Butadiene, a raw material used to produce Riverstone’s nitrile-based gloves.

As such, the group’s gross profit margin strengthened by 4.6 percentage points year-on-year to 24.0% in the quarter.

Riverstone is now ramping up its production levels to match the uptick in orders for health-protective gear from both its new and existing customers.

For one, it is looking to increase its production capacity by 1.4 billion or 15.6% to 10.4 billion pieces of gloves per annum by 4Q20.

This will be done at its new facility, which constitutes phase 6 of Riverstone’s expansion plans, the group states in a regulatory filing on May 11.

“Completion of our new facility for phase 6 of our capacity expansion plans has come at an opportune time, and we are progressively commissioning new lines to satisfy our customers’ urgent need for examination gloves,” notes Executive Chairman and CEO, Wong Teek Son.

“Due to the surge in healthcare glove orders resulting from the Covid-19 pandemic, we have been ramping up production and reducing downtime for our production lines to meet this robust demand”.

As at end March, cash and cash equivalents stood at RM 170.7 million, down from RM 130.3 million a year ago, giving the group sufficient funding capacity to execute its expansion plans.

Looking at the group’s results, CGS-CIMB Ong Khang Chuen says it is 30% higher than forecasts by his team and Bloomberg. “The key surprise was stronger-than-expected margin expansion which widened mainly due to :-
1) favourable supply-demand dynamics leading to a better pricing environment and
2) lower raw material prices,” he says in a May 12 note.

Amid a heightened emphasis on hygiene, Ong anticipates Riverstone to see a spike in demand for gloves among both healthcare and non-healthcare sectors.

Already he notes that the company has an order backlog of around three to four months for cleanroom gloves, as opposed to an average of one month prior to the pandemic. This translates to its present operation level of 95%, as opposed to 88% previously.

To this end, he expects the group to record sales growth of 17% in FY20F bringing earnings up 61% to RM 210 million for the year. DBS analyst Ling Lee Keng has forecast a higher earnings growth of 27%/19% for FY20F/FY21F given the group’s ability to “generate above-industry margins”, particularly for cleanroom gloves.

Both Ong and Ling have posted “buy” or “add” calls on Riverstone at a target price of $1.86 and $2.20 respectively. This is a significant deviation from the $1.47 the group is currently trading at.

To Ling, Riverstone’s current price-to-earnings of 17.7x and 18.3x on FY20F and FY21F sees it trading at a 42% discount compared to its peers.

“This is unjustifiable, in our view, given its leadership position in the cleanroom segment. We see value in Riverstone’s hard-to-replicate cleanroom business that sets it apart from its competitors,” she stresses in a May 12 note.

Source: The edge

https://www.theedgesingapore.com/capita ... paign=FREE
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Re: Riverstone Holdings

Postby winston » Fri May 22, 2020 11:20 am

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When the stars align

We reiterate our positive view on RSTON, as its Malaysian peers reported strong Jan-Mar quarter and guided for more ASP hikes in CY20F.

Stars are aligned for RSTON in FY20F, with
1) stronger sales volume
2) higher ASPs and
3) higher margins (due to lower raw material prices).

We raise our FY20-22F EPS forecasts by 10.6-26.2%; our TP is lifted to S$2.50 (22.7x CY21 P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 037E444104
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Re: Riverstone Holdings

Postby winston » Tue May 26, 2020 9:10 am

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Riverstone Holdings (RSTON SP)
Positive Takeaways From Conference Call; Raise Target Price By 18%


We held a conference call with Riverstone’s CEO on 21 May 20.

Key takeaways are:
a) there is robust demand for healthcare gloves and ample room for ASP hike, with ASP
hikes only starting in May 20;
b) cleanroom gloves are enjoying healthy demand, with a surprise ASP hike in Jun 20; and
c) capacity expansion is set to fully come on line in 4Q20.

We raise our 2020F EPS by 21% and PE-based target price by 18% to S$2.53 (23.1x 2020F PE). Maintain BUY.

Source: UOBKH

https://research.uobkayhian.com/content ... 24b9dc3f42
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Re: Riverstone Holdings

Postby winston » Wed Jun 03, 2020 11:09 am

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What’s New

Running at full capacity; orderbook fully locked in

Margin improvement on higher ASP and lower raw material prices

Demand expected to be strong post COVID-19

Revised earnings up for FY20F/FY21F by 30%/41%; reiterate BUY with higher TP of S$3.09

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fegaakhfj
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