Riverstone Holdings

[CityFarmer]

A few small corrections, on the very informative post.

1) FY2014 revenue contribution was 70% (healthcare) and 30% (Clean-room), IIRC. The healthcare contribution will grow over time, with the capacity expansion

2) Riverstone mostly go direct for both healthcare and clean-room customers, as far as I know.

Glove makers are price takers. Riverstone managed to maintain the ASP, may due to its customer strategy. A prolong ASP downtrend pressure, is a real issue, even for Riverstone, IMO

Riverstone's production isn't the most efficient, thus automation is its next challenge, among other cost reduction initiatives to reduce production cost.

where did you get the breakdown of contribution of revenue to be 30% (cleanroom) and 70% (health care) ?

It was disclosed during a result briefing, directly from Mr. Wong (CEO).

The same info should be available in analyst reports or sites e.g. nextinsight

Revenue/volume split: In terms of revenue, cleanroom and healthcare gloves had a 50-50 split. In terms of volume, it was 30-70, reflecting the higher selling prices of cleanroom gloves.

Got this from nextinsight. It should be volume instead. Thanks for sharing.

I may interpret it wrongly. Since nextinsight has reported that, it must be the case.

Thanks for the clarification.