Riverstone Holdings

[CityFarmer]

One article on top glove market in M'sia, may also applicable to Riverstone.

http://www.valuebuddies.com/thread-3365-...#pid115262

(not vested)

[CityFarmer]

The ringgit will stay low for a while, which is good to the company export-oriented business.

(not vested)

Weak Ringgit poses risks to Malaysian economy

SINGAPORE (July 6): Ringgit weakness could remain a major constraint on policy in Malaysia, London-based economic consultancy Capital Economics said today after the currency fell to a 17-year low.

While today’s decline to 3.81 to US Dollar may have been triggered by concern over the fallout from Greece’s referendum as well as well domestic political factors, the consultancy said Asia’s worst performing currency this year will remain under pressure and as such Bank Negara, the central bank is unlikely to come to the economy’s rescue by cutting interest rates even as it slows further.
...
http://www.theedgemarkets.com/sg/article...an-economy

[Bubbachuck]

Riverstone’s 2QFY2015 net profit jumps 68.1% to RM27.0 million -declares interim dividend of 2.40 sen (RM) per share.

Revenue increased 33.2% to RM129.0 million as demand for both cleanroom and healthcare gloves continues to gain traction among customers. Phase 2 expansion scheduled to complete ahead of time by 3QFY2015...

http://infopub.sgx.com/Apps?A=COW_CorpAn...19f038db12

- v core holding-

[GreedandFear]

Riverstone’s 2QFY2015 net profit jumps 68.1% to RM27.0 million -declares interim dividend of 2.40 sen (RM) per share.

Revenue increased 33.2% to RM129.0 million as demand for both cleanroom and healthcare gloves continues to gain traction among customers. Phase 2 expansion scheduled to complete ahead of time by 3QFY2015...

http://infopub.sgx.com/Apps?A=COW_CorpAn...19f038db12

- v core holding-

Pretty steady performance compared to Q1 (which was a record). On the plus side, Q4 should benefit from the tax credit (in 2014, they recognised most of the tax credit for the new production line in Q4, to the tune of around MYR 3MM) as well as the first full quarter of the new 1B production line (assuming that they have customer off-takes ready as was the case in 2014). Potentially, if the production line is ready in Q3 (as the company expects), we could see the early recognition of the tax credit in Q3. On the plus side company should continue to benefit from strong USD vs MYR as well as low commodity prices. However, gross margins and net margins have jumped 4 - 5 percentage points, over the past year, and I cannot believe that customers will not ask for better pricing...

Happily vested

[CityFarmer]

The M&A speculation, has been started by the Top Glove acquisition plan recently. One company a year. what a plan!

Will both UG and Riverstone fit the bill? I am speculating, Riverstone is too large to digest, with a MC of S$715 million, unlike UG with a MC of only S$63 million.

(not vested in all)

Singapore’s glove makers trailing Malaysia rally: Maybank

SINGAPORE (Oct 23): Singapore-listed rubber glove makers Riverstone and UG Healthcare are trailing their Malaysian counterparts in a rally that may still yet help them gain further on M&A speculation, Maybank ( Valuation: 2.25, Fundamental: 1.40) Kim Eng says in a note.
...
http://www.theedgemarkets.com/sg/article...ly-maybank

[CityFarmer]

The company announced a bonus issue of 1-for-1. The bonus issue will improve the liquidity of the company. The last 10-day average volume is 255,000 shares, as of today.

The company 9M2015 result is fantastic. Net profit growth 114%, over a growth of 47% in revenue. I have missed a gem indeed, but still need to stick to my view. The MYR and oil price impacts, couple with rapid supply expansion of the market, shouldn't be ignored over a mid term.

Anyway, my sincere congratulation to shareholders. What a fantastic ride on the company in the last 1-2 years for its shareholders. 

(not vested)

9M2015 Press Release
http://infopub.sgx.com/FileOpen/Riversto...eID=376802

Bonus issue
http://infopub.sgx.com/FileOpen/Riversto...eID=376883

[valuebuddies]

Oil price/MYR weakness actually good for their export isn't it?

[evilbdboi]

The Wonders of Value Investing.

Have been a shareholder since 2011. If the management is good, shareholders will get to benefit in the long run.

[CityFarmer]

Oil price/MYR weakness actually good for their export isn't it?

The point is, oil price/MYR weaknesses, wouldn't last forever, not even in mid-term, IMO.

[Jacmar]

Oil price/MYR weakness actually good for their export isn't it?

The point is, oil price/MYR weaknesses, wouldn't last forever, not even in mid-term, IMO.

Totally agree with you that oil/MYR wont last forever. This to me is just a one-off bonus and all the glove mfc in Malaysia has a bull run. When the tide goes out we will know who is naked. For this you need to fully understand the fundamentals of RS. They got such a strong moat that is very hard for the other makers to penetrate. one thing that continue to amaze me is that RS continues to trade at a discount to their malaysian counterparts. To me it should be trading at a premium given the quality of the earnings and clean b/s. Only thing I can think off is that RS is size. As a shareholder I am not so concern as long as it has a certain minimum size to get the economy of scale which they are achieving now.

core holdings since 2011... this year cover up all my sins in the other counters!