Riverstone Holdings

[winston]

vested

TQVM behappyalways.

Yes, I think that the results will also be worse over the next few quarters as ASP have dropped quite a bit for Healthcare Gloves (80% of Revenue?).

At the same time, the share price has also dropped, from a high of Sin$2.45 in Aug 2020 to a low of Sin$0.60 in Dec 2021.

BTW, I'm not too sure that this Omicron is over yet. Just saw an article that the number of cases in Europe is spiking again.

On a Dividend Yield basis as well as the Net Cash that they have, it can be considered a Value Stock. Hopefully, they can maintain their dividends in the future.

Looks like there's also some capacity expansion over the next few years. As long as their margins are not too low, then it should also be quite ok. If margins are very low, then I think they would adjust their expansion plans accordingly.

[winston]

not vested

Riverstone Holdings (RSTON SP)
1Q22: Positive Signs That The Worst Is Over

RSTON released its 1Q22 update, showing sharp yoy falls in revenue and net profit, largely in line with expectations.

Healthcare glove ASPs appear to be reaching a plateau which could help support earnings as raw material costs start moderating.

Cleanroom gloves, a key driver for future earnings growth, saw 1Q22 ASPs and sales volumes remaining steady from strong secular demand.

Maintain HOLD with a slightly lower target price of S$0.80.

Source: UOBKH

https://research.uobkayhian.com/content ... 282cbb3cca

[winston]

not vested

Solid execution

1Q NP of RM109m (-2% qoq) slightly above expectations, showing RSTON’s earnings resiliency vs. peers, amid declining healthcare glove ASPs.

Strong demand for cleanroom gloves supports elevated ASPs; meanwhile healthcare glove ASPs likely bottomed, supported by industry’s higher costs.

RSTON continues to prioritise customised offerings in both the cleanroom and healthcare segments to improve stickiness in ASPs. Reiterate Add.

TP: SGD 1.10

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 23CE2C93A5

[winston]

not vested

Riverstone Holdings Ltd (RSTON SP): Lacking near-term catalysts [HOLD, downgrade from BUY; TP: S$0.82]

1Q22 in line; weaker margins y-o-y due to normalisation of demand and ASPs

Margin pressure expected, going forward, owing to rising raw materials, labour, utilities costs

Remain positive in the medium to long term, as cleanroom segment to provide earnings resiliency for sustainable growth

But given lack of near-term catalysts, we cut to HOLD with a lower TP of S$0.82

Source: DBS

[behappyalways]

Irony??? Oversupply yet he wants to build more....


Riverstone executive chairman and chief executive Wong Teek Son said: “The extensive investment in production expansion from the investments made by the market and new players during the Covid-19 peaks has resulted in a current oversupply of gloves and inventory.”


However, the glove manufacturer is moving ahead with plans to build a new cleanroom facility in each of its locations in Bukit Beruntung and Taiping in Malaysia to hold on to its pole position in the cleanroom gloves segment.


Riverstone posts 80% drop in H1 earnings to RM209m amid glove oversupply
https://www.google.com/amp/s/www.busine ... pply%3famp

[winston]

Irony??? Oversupply yet he wants to build more....

I think one needs to distinguish between Healthcare Gloves and Cleanroom Gloves.

Healthcare gloves are now a commodity business. Not much margin left. Some China players are supposedly selling for US$15 to US20.

Cleanroom gloves are supposedly still selling at a good gross margin. Used to be around 55%. Price not too long ago was US$100. Not sure of latest price.

I understand that one can supposedly switch from Cleanroom gloves to Healthcare gloves. But it's not that easy to switch from Healthcare gloves to Cleanroom gloves.

Riverstone used to be split 70% Healthcare Gloves and 30% Cleanroom Gloves.

It might make sense for them to continue expanding in the Cleanroom segment only due to the high margins.

Not vested.

[winston]

not vested

Riverstone Holdings
Intensifying industry headwinds

2Q22 net profit of RM100m (-81% yoy) in line with expectations. Interim DPS
of 10 sen signals RSTON’s intention to return excess cash to shareholders.

While cleanroom’s outlook remains relatively healthy, healthcare ASPs could
see further downside in the near term amid industry oversupply.

Downgrade to Hold from Add with a lower TP of S$0.80 (17x CY23F P/E).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A358A9B207

[winston]

not vested

Riverstone Holdings (RSTON SP)
1H22: Results In Line, Although Headwinds Persist

For 1H22, PATMI was in line with expectations, dragged down by falling ASPs and
moderating demand for healthcare gloves.

The healthcare gloves segment faces ongoing headwinds as additional supply starts to come on stream.

Cleanroom gloves remained resilient in 2Q22 with ASPs holding steady, although demand is expected to soften slightly in 3Q22 due to ongoing sporadic China lockdowns.

With no immediate catalysts, maintain HOLD on Riverstone with a lower target price of S$0.67.

Source: UOBKH

https://research.uobkayhian.com/content ... 4da4e91624

[winston]

not vested

BRIEF-Riverstone Holdings Records Qtrly Profit Attributable 63.5 Mln RGT

Nov 9 (Reuters) - Riverstone Holdings Ltd :

* QTRLY PROFIT ATTRIBUTABLE 63.5 MILLION RGT VERSUS 266.4 MILLION RGT
* QTRLY REVENUE 270 MILLION RGT VERSUS 652.8 MILLION RGT

Source: Reuters

[winston]

not vested

Corporate Presentations 3Q, 2022

Revenue: -23% QoQ;
Net Profit: -37% QoQ

https://links.sgx.com/FileOpen/Riversto ... eID=738288