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CheeryVGoh Supreme	05-Jun-2020 18:52        CheeryVGoh About Contact  Quote this Post!   Mood:
x 0   x 0  Alert Admin	Riverstone Holdings: Positive operating environment leading to higher ASP and margins DBS Group Research3 Jun 2020 Key summary points Running at full capacity orderbook fully locked in Margin improvement on higher ASP and lower raw material prices Demand expected to be strong post COVID-19 Revised earnings up for FY20F/FY21F by 30%/41% reiterate BUY with higher TP of S$3.09 Running at full capacity orderbook fully locked in.  Due to the surge in worldwide demand for products such as examination gloves and facemasks, Riverstone has been witnessing an uptick in orders from both new and existing customers. New customers, mainly from hospitals, account for 40-50% of total sales. The group is running at full capacity of c.95% utilisation currently. Orderbook is fully locked in and any new demand can only be fulfilled next year, likely in January or February, as the Phase 6 expansion to increase production capacity by 1.4bn (+15.6%) to 10.4bn pieces of gloves per annum is expected to be completed by end of this year. Currently, two out of seven lines are already in production. Moving beyond Phase 6, plans are already underway following the group& rsquo s acquisition of a 3.8-acre land bank in Taiping where Riverstone intends to construct its new facility and expand capacity further. Going forward, higher production capacity should help to drive revenue higher for the group. Higher ASP, in line with market trend. Average selling price (ASP) is also on a rising trend, due to the strong demand and tight supply. The 10-20% increase in ASP is effective in May/June 2020 onwards. We would not rule out further increase in ASP in 2H20. Other players like Top Glove, Hartalega and Kossan Rubber are also raising their ASPs. Margin improvement on higher ASP and lower raw material prices.  Besides higher ASP, Riverstone is also benefitting from a lower raw material price environment. The price of butadiene, a key raw material used in the production of its nitrile-based gloves and accounts for c.50% of total costs, has shed 66% YTD. The price of butadiene, a by-product of oil, tends to move in tandem with oil prices. Prices of other raw materials, like nitrile, are also trending down, though not as much as butadiene. Hence, a higher ASP and lower raw material prices would lead to further margin improvement. In 1Q20, which did not benefit much from ASP increase, gross margin had already improved by 4.6ppts y-o-y to 24.0%. We expect further improvement in gross margin to 27.5% for FY20F. Positive demand and supply dynamics. Malaysian Rubber Glove Manufacturers Association (MARGMA) has revised up its estimated export of gloves to c.220bn pieces in 2020, c.20% growth from 2019, amid the current situation. Malaysia is the world& rsquo s largest rubber glove producer and contributes nearly 63% of global supply. The industry is in a tight supply situation, with almost all players running at full capacity. Demand expected to be strong post COVID-19.    Post the pandemic, we expect the demand for healthcare gloves to remain strong, as hygiene will still be a keen concern going forward. For the cleanroom segment, we continue to expect new technologies like 5G, Artificial Intelligence, and Internet of Things to drive demand for cleanroom gloves. Revised earnings up for FY20F/FY21F by 30%/41%.       We have raised earnings for FY20F/FY21F by 30%/41% on higher ASP and margins. The operating environment has been very favourable for glove manufacturers. The strong demand and tight supply have led to further increase in ASP while the lower raw material prices have further boosted margins. On the back of the higher earnings, our TP is revised up to S$3.09 (previously S$2.20), or    PE of 28x (up from 26x, in line with the re-rating of peers) on FY20F earnings, which is at a 30% discount to peers.   Justice888      ( Date: 05-Jun-2020 10:31) Posted: I can?t find the report . Can forward me the link ? Thks stlimst      ( Date: 04-Jun-2020 23:07) Posted: Yes, superb!  Especially for Riverstone. Reading the SGX Research Report on the 3 glove manufacturers, it is clear that the performance of Riverstone in terms of YoY changes  in Revenue, Profit from Ops, EBITA and Profit after tax is the best among the three. Coupled with the fact that DBS just upgraded the target price to $3.02,  Riverstone really deserves a upward re-rating. I am still sticking to my investment in this one.
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NewTrader88 Member	05-Jun-2020 18:30        NewTrader88 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Wonder if Ex Date will have any impact on the price on Monday..
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spec008 Veteran	05-Jun-2020 17:55        spec008 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Monday will be a good day💪 💪 💪
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Longtermer Elite	05-Jun-2020 17:12        Longtermer About Contact  Quote this Post! Style: Flexible   Yells: "A disciplined investor is a wealthy investor"
x 0   x 0  Alert Admin	Agree. Saw some selling here .. once it is done, RS will play catch up.. . Patience is key. Cheers hokpin      ( Date: 05-Jun-2020 16:44) Posted: This counter will follow soon! Longtermer      ( Date: 05-Jun-2020 15:50) Posted: All glove companies should be riding this trend. Make lot of profits.. all their next results will be explosive. Vested since this counter is lagging behind.. cheers.
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hokpin Supreme	05-Jun-2020 16:44        hokpin About Contact  Quote this Post!
x 0   x 0  Alert Admin	This counter will follow soon! Longtermer      ( Date: 05-Jun-2020 15:50) Posted: All glove companies should be riding this trend. Make lot of profits.. all their next results will be explosive. Vested since this counter is lagging behind.. cheers.
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Longtermer Elite	05-Jun-2020 15:50        Longtermer About Contact  Quote this Post! Style: Flexible   Yells: "A disciplined investor is a wealthy investor"
x 0   x 0  Alert Admin	All glove companies should be riding this trend. Make lot of profits.. all their next results will be explosive. Vested since this counter is lagging behind.. cheers.
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Contratrader Elite	05-Jun-2020 12:55        Contratrader About Contact  Quote this Post!
x 1   x 0  Alert Admin	slow and steady up then can play longer until next week ma..Huat ah !!! hokpin      ( Date: 05-Jun-2020 12:53) Posted: Haha, all huat ah! yeey3e      ( Date: 05-Jun-2020 09:45) Posted: why riverstone always like stone? TG fly 5% 10%, riverstone on 1% dont be a stone, be a shinning stone, become diamond. huat ah
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hokpin Supreme	05-Jun-2020 12:53        hokpin About Contact  Quote this Post!
x 0   x 0  Alert Admin	Haha, all huat ah! yeey3e      ( Date: 05-Jun-2020 09:45) Posted: why riverstone always like stone? TG fly 5% 10%, riverstone on 1% dont be a stone, be a shinning stone, become diamond. huat ah
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spec008 Veteran	05-Jun-2020 12:33        spec008 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Dont have a heavy lunch folks... otherwise you might fall asleep after lunch and miss the glove party🍾 😜
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Longtermer Elite	05-Jun-2020 11:58        Longtermer About Contact  Quote this Post! Style: Flexible   Yells: "A disciplined investor is a wealthy investor"
x 0   x 0  Alert Admin	Move up with UG and TP now. Its time to catch.
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SgYuan Supreme	05-Jun-2020 11:54        SgYuan About Contact  Quote this Post!
x 0   x 0  Alert Admin	wb up ew now ew 192 221 w2? w1 29 w2 18 tgt 203 px hit 207 and turn w3 47 tgt 254 px hit 241 delta 34 now look dangerous because this really look like wb up w4 13 tgt 228 px hit low 225 and push up to 235 5min chart bollinger 227 231 236 if px break low 225 again bad sign w5 29 tgt 254 prev high was 246 wa dn 246 192 delta 54 wb up 192 241delta 49 - if wb dont break up 246 then wc continue wc dn 241 ?187 syl0313      ( Date: 05-Jun-2020 10:00) Posted: Master Yuan, any update? SgYuan      ( Date: 03-Jun-2020 15:26) Posted: wa dn 246 219 delta 27 wb up 219 ?236 delta 16 up 61.8% px hit 228 and uturn wc dn 228 ?201 px hit 192 now mini ew 192 221 w2? w1 29 w2 18 tgt 203 w3 w4 w5
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spec008 Veteran	05-Jun-2020 11:24        spec008 About Contact  Quote this Post!
x 0   x 0  Alert Admin	I think what happened this morning at the open shook many people up including me... classic case of manipulation....pump up high...then DUMP....i think many kan cheong spiders must have sold on the cheap...then the BB...scoop up and slowly...push up again....thats why i said it takes BALLZZ of steel to play these glove counters...just my 2c observations....
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spec008 Veteran	05-Jun-2020 11:20        spec008 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Whenever price Drop...sure got willing buyers to buy up....POWER💪 💪 💪
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spec008 Veteran	05-Jun-2020 10:53        spec008 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Interestingly this Glove counter can use CPF to buy unlike UG and TG😜 ....
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Justice888 Supreme	05-Jun-2020 10:31        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	I can?t find the report . Can forward me the link ? Thks stlimst      ( Date: 04-Jun-2020 23:07) Posted: Yes, superb!  Especially for Riverstone. Reading the SGX Research Report on the 3 glove manufacturers, it is clear that the performance of Riverstone in terms of YoY changes  in Revenue, Profit from Ops, EBITA and Profit after tax is the best among the three. Coupled with the fact that DBS just upgraded the target price to $3.02,  Riverstone really deserves a upward re-rating. I am still sticking to my investment in this one.   hokpin      ( Date: 04-Jun-2020 18:01) Posted: Superb. Swee Swee
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Longtermer Elite	05-Jun-2020 10:28        Longtermer About Contact  Quote this Post! Style: Flexible   Yells: "A disciplined investor is a wealthy investor"
x 0   x 0  Alert Admin	Vested today. Ride the Gloves up trend and collect dividend. Cheers..
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Contratrader Elite	05-Jun-2020 10:21        Contratrader About Contact  Quote this Post!
x 0   x 0  Alert Admin	should be a slow ride up..towards TG' s results on 11/6..next thursday.. still sometime cant be all the way chiong up .. TG also control-play u can tell....up and down ..up and down..RS this morning hit almost recent high ..a bit too much la
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spec008 Veteran	05-Jun-2020 10:15        spec008 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Need ballzz of steel to play these glove companies....ha ha
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syl0313 Member	05-Jun-2020 10:00        syl0313 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Master Yuan, any update? SgYuan      ( Date: 03-Jun-2020 15:26) Posted: wa dn 246 219 delta 27 wb up 219 ?236 delta 16 up 61.8% px hit 228 and uturn wc dn 228 ?201 px hit 192 now mini ew 192 221 w2? w1 29 w2 18 tgt 203 w3 w4 w5 SgYuan      ( Date: 03-Jun-2020 08:40) Posted: wa dn 246 219 delta 27 wb up 219 ?236 delta 16 up 61.8% wc dn
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Justice888 Supreme	05-Jun-2020 10:00        Justice888 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Pump and dump kennethkzy      ( Date: 05-Jun-2020 09:55) Posted: dropping already . careful guys
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