Riverstone Holdings

[winston]

Not vested

Riverstone Holdings Limited announced the award of a contract to a company in Malaysia to build 2 new production dipping lines at its factory located at Bukit Beruntung, Selangor Darul Ehsan, Malaysia at a cost of approximately RM4.7million by its wholly-owned subsidiary, Riverstone Resources Sdn Bhd.

Completion of the 2 new production dipping lines is expected before end of December 2011. When completed, the Group’s annual production capacity will increase from 2.3 billion gloves to 2.52 billion gloves by end of the year 2011. (closing
price: $0.430)


Source: Phillips

[Chinaman]

today RS closed at 41.5 cts, can buy leh.
this rubber glove company look good got potential ...but pls do yr own research before jumping in.

[behappyalways]

Not Vested

Riverstone braces for headwinds as big four Malaysian competitors expand aggressively
http://sbr.com.sg/healthcare/more-news/ ... gressively

[winston]

not vested

Riverstone Holdings (RSTON SP): SGD1.75
BUY (TP: SGD2.06)

Strong Momentum To Sustain

Riverstone reported a stellar 2Q15, with PATMI surging 68.1% YoY to MYR27.0m on MYR129.0m revenue (+33.2% YoY), thanks largely to the weakening MYR.

Maintain BUY with higher SGD2.06 TP, based on DCFE valuation (CoE: 8.0%, TG: 2%, 18% upside), implying 19.7x FY15F P/E. We expect continued macroeconomic tailwinds and the cleanroom business to pick up from 2H, sustaining the strong momentum.


Results boosted by favourable macroeconomic tailwinds.

Riverstone delivered yet another impressive set of results following its strong 1Q performance.

Revenue continued to grow by >30% YoY due to strong demand from the healthcare segment and the strengthening of the USD against the MYR.

ASP for the cleanroom segment increased during the quarter while ASP for the healthcare segment held steady (in MYR).

Gross margins also held above the 30% level despite larger revenue contribution from the healthcare segment (healthcare: 55% vs cleanroom: 45%), which yielded lower margins.

Once again, the margin expansion was attributable to a weaker MYR and cheap raw material costs, which in turn resulted in lower production costs.


Strong momentum to sustain.

Management remains confident that the strong momentum can be sustained moving into 2H. Growth of the cleanroom segment is likely to resume as demand should pick up from 2H onwards, on track for the 10% annual growth target.

The macroeconomic tailwinds – a weak MYR and cheap raw material prices caused by low oil prices – are likely to stay and should continue to benefit the group, going forward.

Estimates raised; reiterate BUY with a higher TP.

Hence, we raise our earnings estimates to factor in the favourable industry outlook. We also switch our valuation methodology to DCFE from 1-year forward P/E to better quantify the long-term growth potential of the rubber glove industry, which is undergoing aggressive capacity expansion.

Our new TP of SGD2.06 (CoE: 8.0%, TG: 2%) (from SGD1.54) implies FY15F P/E of 19.7x, in line with the peer average (19.7x).

Furthermore, Rivestone’s niche cleanroom business makes it an attractive acquisition target for other glove makers.

Source: RHB

[winston]

not vested

Riverstone (RSTON SP, BUY, TP: SGD2.25)

Expecting Stellar 3Q Results

Results Preview

We expect Riverstone to deliver stellar 3Q results with net income surging 90% YoY and 13% QoQ on the back of favourable forex movements (the USD strengthening against the MYR).

Reiterate BUY with a higher SGD2.25 TP (13% upside).

Most notably, the cleanroom business is poised to enjoy the full benefit of the MYR increment in ASP, thanks to its customers who are less price sensitive.

Source: RHB

[winston]

not vested

Oct 12, 2015

Positive expansions & currency boost

Expansions of Phase 2 & 3 are on track. Four out of six lines in Phase 2 have commenced production and the outstanding two lines are expected to start by Oct 15.

Orders have been secured for the entire new capacity, up to end 2015. Positive outlook for next year on strong orders and currency boost.

Maintain BUY & SGD2.12 TP. Catalysts from possible actions to boost stock liquidity and better-than-expected earnings.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/C ... 059083.pdf?

[winston]

not vested

Oct 13, 2015

Riverstone Holdings (RSTON SP)

Expansion On Track

Our visit to Riverstone’s Taiping plant reaffirms our positive view.

The group is on track to see capacity grow to 8.2b pieces p.a. by 2018 with a net profit CAGR of 30% over the next three years.

Maintain BUY and target price of S$2.27, based on sector 2016F PE of 18x.

Source: UOBKH

https://research.uobkayhian.com/content ... 3f12fe809c

[winston]

not vested

Oct 11, 2015

Good project execution

Riverstone’s production capacity would expand 24% to 5.2bn pieces p.a. upon the completion of phase II expansion by end-15 (end-14: 4.2bn).

Group-level capacity utilisation rate is at optimal level of c.90%.

Phase III expansion (additional 1bn capacity) is slated to commence operations in 3Q16.

The cleanroom segment would benefit from strengthened US$ and low raw material costs, while the healthcare segment would pass benefits on to customers.

Upgrade Riverstone from Hold to Add, with higher target price of S$1.92

Source: CIMB

https://brokingrfs.cimb.com/lrd8fKePupD ... a_fig2.pdf

[winston]

not vested

Oct 1, 2015

Malaysia NDR: Eye Opener

Investors impressed with Riverstone’s dominance of lucrative cleanroom gloves during our recent NDR. Addressed concerns on possible slowdown of HDD segment, competition & liquidity.

Near-term positives: earnings boost from strong USD/MYR, strong demand for new capacity & possible liquidity boost. We raise FY15-17 EPS by 3-5% for FX effects.

Medium-term risk: rising competition for healthcare gloves.

Maintain BUY & SGD2.12 TP, now at 19x FY16 P/E (from 18x).

Expect catalysts from possible actions to boost stock liquidity.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/C ... 58af13.pdf

[winston]

not vested

Riverstone Holdings (RSTON SP): Beat on strong margins; BUY TP SGD2.36

3Q15 core earnings beat on higher margins, forming 29% of our FY15F. Gross margin was 3ppt higher than anticipated due to favourable currency and material prices.

Expect good results to continue from contributions of new capacity and currency benefits. Raise FY15-17 EPS by 6-8%.

Maintain BUY, TP raised to SGD2.36 from SGD2.12 after raising our EPS and our P/E target to 20x, up from 19x.

Catalysts from possible actions to boost stock liquidity.

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/C ... e42ae3.pdf