Riverstone Holdings

[winston]

not vested

Look past 1Q19 for possible growth recovery

1Q19 results were a slight disappointment, with net profit of RM30.2m making up 21.3%/20.7% of our/consensus’ FY19F forecasts.

EBITDA margins were stable over past 3 quarters; look ahead to 2H19 for potential margin uplift on favourable FX trend and lower raw material prices.

We deem the current valuation at a 32% discount to peers as undemanding.

Maintain Add with an unchanged TP of S$1.22.

Source: CIMB

https://brokingrfs.cimb.com/Hz6lgd9suyu ... ruePA2.pdf

[behappyalways]

Riverstone reports 2.8% decline in 1Q earnings to $6.5 mil on lower margins
https://www.theedgesingapore.com/rivers ... er-margins

[winston]

not vested

May 14, 2019

Riverstone Hldgs ($0.995, up 0.5 cents) saw 1Q19 revenue appreciate 14.6% to RM240.5mln although net earnings dipped 2.8% to RM30.2mln.

While the improved turnover was driven by growing sales volume for both its healthcare and cleanroom gloves, gross profit had declined by 0.5% with gross profit margin contracting 2.9 percentage points to 19.4%.

This contraction was mainly attributable to a change in product mix and decrease in average selling prices of healthcare gloves.

Apart from heightened competition in the market, the downward price revision reflects the
falling prices of Butadiene, a key raw material used in the production of the Group’s nitrile-based gloves.

The Group generated positive operainng cash flows of RM50.6mln, resulting in a net cash position of RM110.6mln which equates to 4.9% of current market cap.

No interim dividend was declared (1Q18: nil). Going forward, subject to market conditions, the Group will add another 1.4 billion pieces of gloves by the end of 2019 for Phase 6 of its expansion plans, which will bring the Group’s total annual production capacity to 10.4 billion pieces of gloves.

At S$0.995, market cap is S$737.4mln, trailing P/E is 17.4x, P/B is 3.2x, dividend yield is 2.2% and price-to-sales is 2.4x.

Source: Lim & Tan

[winston]

vested

SI RESEARCH: RIVERSTONE HOLDINGS – AN UNDERVALUED GEM?

by Mei Siew Lai

The rubber glove industry has been growing at an average of eight percent to 10 percent for the past 25 years.

Riverstone’s 1Q19 performance fell short of expectations.

Revenue increased 14.6 percent to RM240.5 million attributed to growing sales volume for both its healthcare and cleanroom gloves.

However, gross profit declined marginally by 0.5 percent to RM46.6 million as gross margin contracted from 22.3 percent to 19.4 percent owing to an unfavourable shift in product mix toward healthcare gloves with a lower average selling price (ASP).

Source: Aspire

http://aspire.sharesinv.com/61002/si-re ... alued-gem/

[winston]

BRIEF-Riverstone Holdings Posts Q2 Net Profit Of 32.5 Mln RGT

Aug 8 (Reuters) - Riverstone Holdings Ltd :

* NET PROFIT DECLINED 3.1% YOY TO 32.5 MILLION RGT FOR 2QFY2019
* Q2 REVENUE OF 239.7 MILLION RGT, UP 11.9%

Source: Reuters

[winston]

not vested

Upgrade to BUY on improving product mix, stabilising raw material prices and attractive valuations

Raised earnings estimates by 7% for FY19F and FY20F;
TP increased to S$1.16
Beneficiary of a strengthening USD vs MYR
2Q19 met estimates; steady improvement in GP margin

Source: DBS

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

[winston]

not vested

BRIEF- Riverstone Holdings Posts QTRLY Net Profit 35.6 MLN RGT

Nov 7 (Reuters) - Riverstone Holdings Ltd :

* QTRLY NET PROFIT 35.6 MILLION RGT VERSUS 32.1 MILLION RGT
* Q3 REVENUE 251.3 MILLION RGT VERSUS 239.5 MILLION RGT

Source: Reuters

[winston]

not vested

Riverstone Holdings
Better times ahead

3Q19 results disappointed slightly due to weaker topline growth. 9M19 net profit came in at 70%/72% of our/Bloomberg consensus full-year estimates.

We expect sequentially stronger earnings ahead, with cleanroom gloves demand picking up and competition in the healthcare gloves segment easing.

We deem the current valuation, at 40% discount to peers, as undemanding.

Maintain Add, with a higher TP of S$1.25 (17.0x CY21F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A83BFB1562

[winston]

not vested

Riverstone Holdings ($0.92, down 1.5 cents) is pleased to announce that the Company’s wholly-owned subsidiary, Eco Medi Glove Sdn Bhd (“EMG”) had acquired a piece of industrial land located at Kamunting Industrial Estate, Mukim of Asam Kumbang, District of Larut & Matang under Lot PT 6030 held under HS(D) 9915, State of Perak, Malaysia, measuring approximately 3.80 acres (165,692 sq. ft .) for a total consideration of RM4,200,000.00.

The Purchase Consideration was arrived at on a “willing buyer, willing seller” basis taking into account, inter alia, the market value of similar property in that area.

The Acquisition of Industrial Land is to support the business expansion with the construction of new factories which house additional production dipping lines.

The relative figures computed on the bases set out in Rule 1006 of the Listing Manual do not exceed 5%. Accordingly, the Acquisition of Industrial Land constitutes a non-discloseable transaction as defined under Chapter 10 of the Listing Manual of the SGX-ST.

The said Acquisition of Industrial Land will be funded from internal and/or external resources. The Acquisition of Industrial Land is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Group for the current
financial year ending 31 December 2019.

None of the Directors or substantial shareholders of the Group has any interest, direct or
indirect, in the Acquisition of Industrial Land, save through their shareholdings in the Company.

Riverstone’s market cap stands at S$S$694.2 mln and currently trades at 16.1x PE and 2.8x PB. Dividend yield stands at 2.5% with payout ratio of 38.6%, and is currently in a net cash position.

Source: Lim & Tan

[winston]

Comforting hands

RSTON saw ramped-up healthcare glove demand from its distributors since the onset of Covid-19; orders should keep utilisation rate high through Jun.

Reacceleration of cleanroom glove sales growth will also bode well for RSTON’s margins. We forecast EPS growth of 15.5% in FY20F (FY19F: 5%).

Valuation is attractive; RSTON trades at c.50% discount to its Malaysian listed peers (in terms of CY20F P/E).

Reiterate Add with higher TP of S$1.30.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... FCD783067F