Riverstone    Last:0.85    -0.02

potential take over target

Time to reasonable . Dyodd 

 

From $1 down in 2 -3 days in fear of Msia closing for 2 weeks nia . So fast. But profitable & well managed Co

n3wbie      ( Date: 18-Mar-2020 09:28) Posted: Technically, the Malaysia shutdown does not impact imports and exports of goods based on my reading and Malaysian peers have all rebounded today by at least 3-4%. Very undemanding valuations to be trading at 13x PE when sector tailwinds are all in their favour  Sgvale      ( Date: 18-Mar-2020 08:43) Posted: Riverstone plunged by Malaysia 2 weeks closure. Top Glove also down. Inventories Gloves still can export delivery to oversea?

 

Technically, the Malaysia shutdown does not impact imports and exports of goods based on my reading and Malaysian peers have all rebounded today by at least 3-4%. Very undemanding valuations to be trading at 13x PE when sector tailwinds are all in their favour 

Sgvale      ( Date: 18-Mar-2020 08:43) Posted: Riverstone plunged by Malaysia 2 weeks closure. Top Glove also down. Inventories Gloves still can export delivery to oversea?

 

Riverstone plunged by Malaysia 2 weeks closure. Top Glove also down. Inventories Gloves still can export delivery to oversea?

 

Have to agree on the fundamentals and also solid management at Riverstone. They have been able to deliver YoY growth with capacity expansion. Decline in their raw material prices and sharp rally USD/MYR are factors clearly in their favour. Historical PE multiple is aroun 18x and currently it is trading at 13.4x - clearly not justified and likely a function of market capitulation or panic selling from investors/funds. For those with the tenacity to hold for the mid-long term, clearly one to add to the portfolio

Sgvale      ( Date: 17-Mar-2020 16:03) Posted: Msia locked down tomorrow & all selling out of fear. Buy Riverstone , fundamental profitable Co.

 

Lockdown is okay but don' t knockdown.

Sgvale      ( Date: 17-Mar-2020 16:03) Posted: Msia locked down tomorrow & all selling out of fear. Buy Riverstone , fundamental profitable Co.

 

Msia locked down tomorrow & all selling out of fear. Buy Riverstone , fundamental profitable Co.

 

Also probably a function of relatively lower liquidity so when funds are looking to liquidate, they just kill the stock regardless of its fundamentals

bishan22      ( Date: 16-Mar-2020 15:25) Posted: Produce gloves also no use in this crises. Sgvale      ( Date: 16-Mar-2020 15:13) Posted: Small volume but price plunge so much.

 

No more stones in the river?

 

Produce gloves also no use in this crises.

Sgvale      ( Date: 16-Mar-2020 15:13) Posted: Small volume but price plunge so much.

 

Small volume but price plunge so much.

 

Staying resilient today but probably quite under-owned given that Malaysian peers (Top Glove, Hartalega, Kossan and Supermax) are all hitting new highs. RS hit $1.30 recently and has since retraced to $1, yet to follow the trend of its counterparts

 

fair point but given that ROE/ROIC are in-line or better than peers, the valuation gap seems unjustified unless I' m missing out on something

AttasBoss      ( Date: 09-Mar-2020 23:36) Posted: The only difference is RS listed at sg, Hartalega and Kossan listed at My. n3wbie      ( Date: 09-Mar-2020 23:17) Posted: good buying opportunity for the stock? malaysian peers such as Hartalega, Top Glove and Kossan have all gone back to near their all time highs but RS continues its decline. the sharp drop in crude oil price should also benefit them given that the raw material of synthetic gloves is butadiene, which is a byproduct of crude oil. on the back of a positive USD/MYR, market demand for masks/gloves and a favourable raw material pricing, all the tailwinds are aligned

 

The only difference is RS listed at sg, Hartalega and Kossan listed at My.

n3wbie      ( Date: 09-Mar-2020 23:17) Posted: good buying opportunity for the stock? malaysian peers such as Hartalega, Top Glove and Kossan have all gone back to near their all time highs but RS continues its decline. the sharp drop in crude oil price should also benefit them given that the raw material of synthetic gloves is butadiene, which is a byproduct of crude oil. on the back of a positive USD/MYR, market demand for masks/gloves and a favourable raw material pricing, all the tailwinds are aligned

 

good buying opportunity for the stock? malaysian peers such as Hartalega, Top Glove and Kossan have all gone back to near their all time highs but RS continues its decline. the sharp drop in crude oil price should also benefit them given that the raw material of synthetic gloves is butadiene, which is a byproduct of crude oil. on the back of a positive USD/MYR, market demand for masks/gloves and a favourable raw material pricing, all the tailwinds are aligned

 

The stock trades at 14x FY20 PE while peers like Kossan are trading at 23x, Top Glove at 33x and Hartalega at 47x quite a huge valuation gap despite RS having strong ROIC/ROE

rainbowman      ( Date: 06-Mar-2020 13:58) Posted: hmm...CR gloves the one with higher margin, but demand for CR likely dampened due to current situation, still I'm nibbling this counter..good luck to all vested n3wbie      ( Date: 06-Mar-2020 13:47) Posted: Recent update report post FY19 results by DBS - maintained " Buy" with TP of $1.34, issued when share price was $1.05 Capacity expansion to propel growth Improving demand outlook and margins. We are optimistic that Riverstone (RSTON) can continue to generate higher volumes for both the healthcare (HC) and the high-margin cleanroom (CR) gloves. Production capacity is on track to increase by 1.4bn (+15.6%) in FY2020, to cater to the increasing demand. We expect ASPs to stabilise after a weak FY19. Coupled with a more benign raw material price, overall gross margin for the group is expected to remain above 20%, higher than industry average of c.18%. At current price-to-earnings (PE) of 15.9x and 15.3x on FY20F and FY21F earnings respectively, RSTON is trading at a c.45% discount to peers. This is unjustifiable, in our view, given its leadership position in the CR segment. We see value in RSTON&rsquo s hard-to-replicate cleanroom business that sets it apart from its competitors. Glove makers are generally regarded as defensive and relatively more stable given their resilient demand. Where we differ: We are optimistic that RSTON can continue to generate above-industry margins given its strong market share in CR gloves. Potential catalysts: Further capacity expansion, sustained increase in CR glove mix (and thus margins), higher ASP and inorganic growth are potential catalysts. Valuation: Maintain BUY call with TP of S$1.34. Overall, there are no changes in our earnings forecasts. Our TP is pegged to 20x FY20F earnings. This is equivalent to a c.33% discount to its bigger peers.

 

hmm...CR gloves the one with higher margin, but demand for CR likely dampened due to current situation, still I'm nibbling this counter..good luck to all vested

n3wbie      ( Date: 06-Mar-2020 13:47) Posted: Recent update report post FY19 results by DBS - maintained " Buy" with TP of $1.34, issued when share price was $1.05 Capacity expansion to propel growth Improving demand outlook and margins. We are optimistic that Riverstone (RSTON) can continue to generate higher volumes for both the healthcare (HC) and the high-margin cleanroom (CR) gloves. Production capacity is on track to increase by 1.4bn (+15.6%) in FY2020, to cater to the increasing demand. We expect ASPs to stabilise after a weak FY19. Coupled with a more benign raw material price, overall gross margin for the group is expected to remain above 20%, higher than industry average of c.18%. At current price-to-earnings (PE) of 15.9x and 15.3x on FY20F and FY21F earnings respectively, RSTON is trading at a c.45% discount to peers. This is unjustifiable, in our view, given its leadership position in the CR segment. We see value in RSTON&rsquo s hard-to-replicate cleanroom business that sets it apart from its competitors. Glove makers are generally regarded as defensive and relatively more stable given their resilient demand. Where we differ: We are optimistic that RSTON can continue to generate above-industry margins given its strong market share in CR gloves. Potential catalysts: Further capacity expansion, sustained increase in CR glove mix (and thus margins), higher ASP and inorganic growth are potential catalysts. Valuation: Maintain BUY call with TP of S$1.34. Overall, there are no changes in our earnings forecasts. Our TP is pegged to 20x FY20F earnings. This is equivalent to a c.33% discount to its bigger peers.  rainbowman      ( Date: 06-Mar-2020 13:41) Posted: Healthcare glove demand high, no statistics on clean room gloves ( electronics industry, probably down), otherwise this counter is safe bet, I'm vested and buying

 

Recent update report post FY19 results by DBS - maintained " Buy" with TP of $1.34, issued when share price was $1.05

Capacity expansion to propel growth

Improving demand outlook and margins.
We are optimistic that Riverstone (RSTON) can continue to generate higher volumes for both the healthcare (HC) and the high-margin cleanroom (CR) gloves. Production capacity is on track to increase by 1.4bn (+15.6%) in FY2020, to cater to the increasing demand. We expect ASPs to stabilise after a weak FY19. Coupled with a more benign raw material price, overall gross margin for the group is expected to remain above 20%, higher than industry average of c.18%.

At current price-to-earnings (PE) of 15.9x and 15.3x on FY20F and FY21F earnings respectively, RSTON is trading at a c.45% discount to peers. This is unjustifiable, in our view, given its leadership position in the CR segment.

We see value in RSTON&rsquo s hard-to-replicate cleanroom business that sets it apart from its competitors. Glove makers are generally regarded as defensive and relatively more stable given their resilient demand.

Where we differ: We are optimistic that RSTON can continue to generate above-industry margins given its strong market share in CR gloves.

Potential catalysts: Further capacity expansion, sustained increase in CR glove mix (and thus margins), higher ASP and inorganic growth are potential catalysts.

Valuation: Maintain BUY call with TP of S$1.34. Overall, there are no changes in our earnings forecasts. Our TP is pegged to 20x FY20F earnings. This is equivalent to a c.33% discount to its bigger peers. 

rainbowman      ( Date: 06-Mar-2020 13:41) Posted: Healthcare glove demand high, no statistics on clean room gloves ( electronics industry, probably down), otherwise this counter is safe bet, I'm vested and buying. n3wbie      ( Date: 06-Mar-2020 13:05) Posted: Surprisingly despite the brokers' upgrades post results and the continued rally in share prices of peers in Malaysia, Riverstone is still lagging behind its peers

 

Healthcare glove demand high, no statistics on clean room gloves ( electronics industry, probably down), otherwise this counter is safe bet, I'm vested and buying.

n3wbie      ( Date: 06-Mar-2020 13:05) Posted: Surprisingly despite the brokers' upgrades post results and the continued rally in share prices of peers in Malaysia, Riverstone is still lagging behind its peers

 

Surprisingly despite the brokers' upgrades post results and the continued rally in share prices of peers in Malaysia, Riverstone is still lagging behind its peers