Riverstone Holdings

[winston]

vested

RHB downgrades Riverstone to 'neutral' due to lower earnings estimates and Covid-19 restrictions

by Vivian Yee Pu

Given the lower production volumes, estimated at 20-30% below the full potential during NRP1, the analysts lowered their FY2021F earnings due to a lower utilisation rate assumption.

Source: The Edge

https://www.theedgesingapore.com/capita ... d-covid-19

[winston]

vested

Riverstone Holdings (RSTON SP): Looking past the pandemic

BUY Entry – 1.30 Target – 1.50 Stop Loss – 1.22

Riverstone Holdings Limited produces, sells, and distributes clean-room products for use in highly controlled and critical environments.

The company’s products include nitrite and natural rubber gloves and clean-room packaging materials and finger cots, as well as face masks, face pouches, hoods, caps, jumpsuits, and swabs.

Looking past the pandemic. While the pandemic-induced demand for gloves in 2020 helped push Riverstone’s share price to a high of S$2.35 (80% higher than its current share price of S$1.33), the company’s business outlook is likely to be driven by production of cleanroom products, which are more sustainable and typically command higher margins.

These products are primarily used in semiconductor, pharmaceuticals, biotech, life science, aerospace and military applications.

Consensus estimates are still overall bullish despite recent downgrades. There are 4 BUYS / 2 HOLDS / 0 SELL, and a 12m TP of S$1.62 (+22% upside potential), despite recent downgrades by Nomura (Neutral TPS$1.37) and RHB (Neutral TP$1.30).

FY2021 EPS is forecasted to surge 118% YoY before declining around 50% YoY in FY2022, with the decline largely attributed to the unsustainably high base of FY2021.

Riverstone currently trades at 4x / 8x FY2021 / FY2022 PE, which is an attractive valuation.

Source: KGI

[winston]

vested

BRIEF-Riverstone Holdings Ltd Says HY Revenue 2,019.5 Million RGT

Aug 5 (Reuters) - Riverstone Holdings Ltd :

* RIVERSTONE HOLDINGS LTD SAYS HY REVENUE 2,019.5 MILLIONRGT VERSUS 626.7 MILLION RGT

* RIVERSTONE HOLDINGS LTD- RECOMMENDS AN INTERIM DIVIDEND OF1 0.00 SEN PER SHARE

* RIVERSTONE-1HFY2021 NET PROFIT 1.0 BILLION RGT, UP 656.8%

Source: Reuters

[behappyalways]

Riverstone reports 656.8% earnings jump
https://www.theedgesingapore.com/capita ... nings-jump

[winston]

not vested

RHB stays 'neutral' on Riverstone on downtrend in glove prices

by Atiqah Mokhtar

In an August 6 research note, RHB’s Singapore research team says Riverstone’s 1HFY2021 results were in line with their estimates, with the company reporting a surge in earnings on higher average selling prices (ASPs) and volumes.

But looking ahead, the team anticipates earnings will be negatively impacted due to a weaker ASP outlook for gloves.

The team also highlighted the company’s plan to complete Phase 7 of its expansion for FY2021, which will increase its capacity by 14% to 12 billion pieces per annum, up from its current total capacity of 10.5 billion pieces per annum.

The team discloses that its earnings estimates incorporate blended ASP assumptions of US$65 ($88), US$50 and US$39 per 1,000 pieces of gloves for FY2021, FY2022 and FY2023 respectively.

Source: The Edge

https://www.theedgesingapore.com/capita ... ove-prices

[winston]

not vested

Riverstone Holdings
(RSTON SP)
Trading Buy Range: S$1.25-1.26
Last price: S$1.26
Target price: S$1.37
Protective stop: S$1.18

Last Friday, the price broke and closed above the declining trendline that formed
since May 21.

The Stochastic is moving higher near the oversold region after having a bullish crossover.

These could increase chances of the stock price moving higher.

The potential upside target is S$1.37. Stops could be placed at S$1.18.

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$1.32.

Source: UOBKH

[winston]

vested

Recent drop in Riverstone's share price presents 'buying opportunity’': DBS

by Felicia Tan

Lower target price of $1.28 from $1.77 previously.

The new target price is still pegged to Riverstone’s four-year average price-to-earnings (P/E) of 10 times on blended FY2022 and FY2023 earnings.

Estimated 50% market share in the high-end cleanroom (CR) gloves segment.

Cut her earnings estimates for the FY2021, FY2022 and FY2023 by 16%, 22% and 10% respectively to account for her lower ASP assumptions.

Expects earnings contribution from the CR segment to normalise to over 50% of Riverstone’s total earnings from FY2022 onwards.

Source: The Edge

https://www.theedgesingapore.com/capita ... tunity-dbs

[behappyalways]

A good read on wavehunter posting


http://www.sharejunction.com/sharejunct ... dCount=300

[winston]

vested

Riverstone still sees strong 3Q results despite shift to 'endemic' Covid-19

by Lim Hui Jie

Revenue for Riverstone grew 35.3% to reach RM652.8 million ($211.75 million), compared to 3QFY2020’s figure of 482.3 million.

Gross profit rose 42% y-o-y to RM357.2 million for 3QFY2021, as average selling prices remain comparatively higher than pre-pandemic levels.

Blended gross profit margin stood at 54.7% for 3Q2021.

It also reported cash and cash equivalents of RM1.8 billion as at 30 September 2021, compared to 648.9 million in 3QFY2020.

Source: The Edge

https://www.theedgesingapore.com/news/r ... c-covid-19

[winston]

vested

Riverstone (RSTON SP): <Results First Take> 9-month results above expectations as demand remains strong [BUY; TP: S$1.28]

9-month results beat expectations as demand remains strong
Expect firmer cleanroom gloves price vs healthcare
New products and new markets for income diversification; cleanroom segment to provide earnings resiliency and sustainable growth
We currently have a BUY call with TP of S$1.28; will review earnings estimate post briefing

Valuation

We have cut FY21F/22F/23F earnings by 16%/22%/10% mainly to account for our lower ASP assumptions.

Our TP is lowered to S$1.28, from S$1.77 previously, still pegged to its four-year average PE of 10x on blended FY22F and FY23F earnings to reflect a more normalised environment.

Source: DBS

https://www.dbs.com/insightsdirect/comp ... secid=6751