Riverstone Holdings

Re: Riverstone Holdings

Postby winston » Mon Feb 29, 2016 10:56 am

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Riverstone Holdings Ltd – Growth engine fuelled by favourable FX and better margin

Recommendation: Non-rated, Last Done Price: S$ 1.020

· 4Q15 and FY15 earnings hit record high, lifted by better operational efficiency. Higher demand as well as the strengthening USD against MYR and stable raw material prices lifted top and bottom line.

· We are Positive that the accelerated expansion will provide the Group capacity in time to absorb the rising demand. Ability to customize according to clients’ needs as well as its two-pronged approach in growing both cleanroom and healthcare gloves provide competitive edge to the Group.

http://internetfileserver.phillip.com.s ... 160226.pdf
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Re: Riverstone Holdings

Postby winston » Fri May 06, 2016 10:23 am

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1Q16 net profit for Riverstone was relatively flat (+0.6% yo-y to RM$27.2m) at 17% and 19% of our FY16 estimates and
consensus’ estimates respectively, primarily impacted by net foreign exchange loss of c. RM$3m.

Revenues grew 16.5% y-o-y to RM148.1m, in line with our full year forecasts, helped by higher volumes and improved
utilisation but partly offset by continued pressure on ASPs.

Gross margins also held up relatively well, at 29%, despite the gas hike and higher butadiene prices.

More updates to follow later

Source: DBS
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Re: Riverstone Holdings

Postby winston » Mon May 09, 2016 10:05 am

Riverstone Holdings Limited – Stable delivery

Recommendation: Non-Rated, Last Done Price: S$ 0.94, Target Price: N/A

· 1Q16 revenue rose 16.5% yoy, lifted by higher sales volume, but offset by lower ASP.

· Flattish PATMI was mainly due to the lower demand in the Group’s revenue and margin driver – its cleanroom gloves.

· Brighter outlook in 2H16, as sales is expected to pick up alongside the additional capacity.

· Remains Positive on the Group’s prospect as the accelerated expansion will be in time to provide the Group additional capacity to absorb the rising demand.

Source: Phillips
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Re: Riverstone Holdings

Postby winston » Tue May 10, 2016 10:49 am

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Riverstone Holdings’ 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)

Source: DBS
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Re: Riverstone Holdings

Postby winston » Thu Jun 23, 2016 9:19 am

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Expect a better 2H

The phase III expansion capacity (6 lines; totaling 1bn pieces p.a.) is slated to start contribution in 2H16.

After a slower 1Q16, demand for cleanroom gloves has shown signs of improvement in 2Q; management expects demand to pick up further in 2H16.

The healthcare glove segment should continue to face ASP and margin pressure due to stiff competition.

We upgrade Riverstone from Reduce to Hold, with an unchanged target price of S$0.91, still pegged to the peer average of 17x CY17 core P/E.

Source: CIMB

https://brokingrfs.cimb.com/q-oEBn5uHW2 ... 3qqEw2.pdf
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Re: Riverstone Holdings

Postby winston » Fri Nov 11, 2016 10:00 am

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Riverstone Holdings - Steady Recovery (HOLD, TP SGD0.92, RSTON SP, Industrials)

3Q16 earnings were in line; 9M16 met 72% of our FY16E. Core earnings for 3Q16 fell 4% YoY but increased 21% QoQ.

The improvement was attributable to:
1) gross margin recovery (+1.7ppt QoQ) from better product mix and improved USD/MYR;
2) revenue growth from increased capacity and higher demand, where sales volume increased 15% QoQ;
3) better cost management.

We expect recovery to continue as capacity increases and the macro environment stabilises.

Maintain HOLD and TP of SGD0.92 (16x FY17E EPS; 1 SD above mean).

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/3 ... 1018b0.pdf
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Re: Riverstone Holdings

Postby winston » Sat Nov 19, 2016 12:08 pm

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Riverstone would benefit from a strong US$ versus the Malaysian ringgit too, as nearly twice the percentage of its revenue is US$ denominated than its costs.

However, the stock has been kept at “hold” with a target price of 94 cents.

UOB has recommended entering at 80 cents

Source: The Edge
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Re: Riverstone Holdings

Postby winston » Fri Dec 09, 2016 9:18 am

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Growth of Riverstone on track despite repatriation rule

By Benjamin Cher

SINGAPORE (Dec 8): Maybank Kim Eng is maintaining its “hold” call on Riverstone Holdings with a target price of 92 cents, saying the recent correction to its stock price has been overdone.

Shares of Riverstone as well as other Malaysian glovemakers have slid about 3% this week after Malaysia announced measures requiring exporters to repatriate 75% of their foreign currency proceeds.

“We believe the selling is overdone as the move has a limited impact on Riverstone’s earnings,” says analyst John Cheong in a Thursday report.

However, Riverstone’s capacity expanion is on track, with Phase 3 adding 19% capacity, and Phase 4, 16%, is currently on track, notes Cheong.

To be sure, Riverstone has seen overwhelming demand for healthcare gloves, thanks to its new US market. Meanwhile, cleanroom gloves demand continues to recover from a muted 1H16, notes Cheong, with volume for FY16 remaining stable.

Glovemakers face water supply constraints for new facilities, with Riverstone stating that each line needs more than 100 litres of water per minute.

Riverstone claims that it has secured water supply up to Phase 5 expansion in 2018 with the relevant authorities. The company says it will look for locations with better water supply in the expansion phase.

As for forex currency risks, the only cost Riverstone has in US dollars comes from raw materials, which makes up 30% to 35% of sales, notes Cheong. The company could also procure raw materials locally from suppliers who transact in Ringgit.

Shares of Riverstone closed 1 cent higher at 86 cents.

Source: The Edge

http://smr.theedgemarkets.com/article/g ... up-content
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Re: Riverstone Holdings

Postby behappyalways » Wed Feb 22, 2017 7:23 pm

Riverstone posts 5% fall in FY16 earnings on higher raw material prices and forex volatility
http://www.theedgemarkets.com.sg/articl ... volatility
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Re: Riverstone Holdings

Postby winston » Mon May 08, 2017 8:28 am

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Riverstone gets an upgrade on 1Q earnings surprise

By Michelle Zhu

SINGAPORE (May 5): Lim & Tan Securities is upgrading its call on Riverstone Holdings from “hold” to “buy” while upping its 2017 and 2018 net profit forecasts for RM140 million ($45.3 million) and RM 150 million respectively, from RM120 million and RM130 million previously.

This represents a forward and prospective price-earnings ratio of 13-14x, which Lim & Tan deems undemanding relative to the company’s growth rate of 20%.

In a report issued on Friday, the brokerage’s Singapore research team says Riverstone’s 1Q17 net profit of RM33.6 million accounted for 27.5% of their old 2017 forecast of RM120 million, when it usually accounts for only 20%, and therefore comes as a surprise.

(See also: Riverstone posts 24% rise in 1Q earnings to $10.8 mil on higher demand, production capacity)

The earnings beat was due to better than expected growth in the higher margined clean room glove segment on the back of new customer and production additions in the mobile phone, tablet and LCD manufacturing sectors.

This implies market share gains from new customers as well as new product penetration as the company has traditionally been strong in the hard disk drive (HDD) segment, says the team.

Healthy demand from the healthcare business segment, as volumes grew 20% on-year, also contributed to the growth.

“We understand that the relatively new US market helped accelerate the take-up rate for their new capacity,” comments the team on the company’s entire new production capacity of 1 billion glove pieces being taken up during the quarter, which it believes will “come in handy to meet the strong immediate demand” in 2H17.

Lim & Tan believes there is scope for Riverstone to increase its dividends to 7 Malaysian cents, giving a yield of close to 3%.

Should the stock trade to its five-year mean PE of 16x, the research team says its target price for Riverstone would be $1.06.

Shares of Riverstone closed 8 cents higher at 96 cents on Friday.

Source: The Edge

http://www.theedgemarkets.com.sg/smr/?q ... 4-87358173
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