Riverstone Holdings

[CityFarmer]

The company 3Q report is announced today.

I am yet to dig into the detail, but at a glance, COS increased faster than the revenue for 3Q quarter, isn't a good sign

(not vested)

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Riverstone’s 3QFY2014 net profit grows 5.2% to RM16.5 million bolstered by higher gloves demand

• Revenue increased by 9.2% to RM102.7 million from RM94.0 million in 3QFY2013
• Production in Taiping, Malaysia currently on track, with ramp up to full capacity of 4.2 billion
glove pieces expected by 4QFY2014
• Strong balance sheet with cash position of RM87.5 million and no borrowings

Detail Report : http://infopub.sgx.com/FileOpen/Riversto...eID=321841
Press Release : http://infopub.sgx.com/FileOpen/Riversto...eID=321842

[Tiggerbee]

The company 3Q report is announced today.

I am yet to dig into the detail, but at a glance, COS increased faster than the revenue for 3Q quarter, isn't a good sign

(not vested)

-------
Riverstone’s 3QFY2014 net profit grows 5.2% to RM16.5 million bolstered by higher gloves demand

• Revenue increased by 9.2% to RM102.7 million from RM94.0 million in 3QFY2013
• Production in Taiping, Malaysia currently on track, with ramp up to full capacity of 4.2 billion
glove pieces expected by 4QFY2014
• Strong balance sheet with cash position of RM87.5 million and no borrowings

Detail Report : http://infopub.sgx.com/FileOpen/Riversto...eID=321841
Press Release : http://infopub.sgx.com/FileOpen/Riversto...eID=321842

The deterioration in gross margin might be attributed to the increase in gas prices. A 20% increase in gas price led to a 1% impact in ASPs. Also, increased competition might also had impacted the ASP.

http://www.nextinsight.net/index.php/sto...rly-result

[CityFarmer]

The company briefing presentation slide below

http://infopub.sgx.com/FileOpen/Riversto...eID=322988

[Yoyo]

One minor point:

Noted that the interest income has dropped from MYR 302k in Qtr 1, MYR 226k in Qtr 2 to MYR 4k in Qtr 3. Given that Riverstone still have huge Fixed Deposits placement, I am puzzled by the little interest income reported for Qtr 3.

I have emailed my query to IR Gabriel and Stephanie, on the date of result announcement, but they have not yet responded.

My guess is that the interest income is reported net of currency loss on the principal (USD deterioration during Qtr 3), but is this the right accounting treatment? Another remote possibility is recognition based on cash basis (ie the interest income is received) instead of accrual basis.

(vested)

[CityFarmer]

One minor point:

Noted that the interest income has dropped from MYR 302k in Qtr 1, MYR 226k in Qtr 2 to MYR 4k in Qtr 3. Given that Riverstone still have huge Fixed Deposits placement, I am puzzled by the little interest income reported for Qtr 3.

I have emailed my query to IR Gabriel and Stephanie, on the date of result announcement, but they have not yet responded.

My guess is that the interest income is reported net of currency loss on the principal (USD deterioration during Qtr 3), but is this the right accounting treatment? Another remote possibility is recognition based on cash basis (ie the interest income is received) instead of accrual basis.

(vested)

There were differences between quarter, but overall 9 months, it was still within expectation.

[CityFarmer]

One minor point:

Noted that the interest income has dropped from MYR 302k in Qtr 1, MYR 226k in Qtr 2 to MYR 4k in Qtr 3. Given that Riverstone still have huge Fixed Deposits placement, I am puzzled by the little interest income reported for Qtr 3.

I have emailed my query to IR Gabriel and Stephanie, on the date of result announcement, but they have not yet responded.

My guess is that the interest income is reported net of currency loss on the principal (USD deterioration during Qtr 3), but is this the right accounting treatment? Another remote possibility is recognition based on cash basis (ie the interest income is received) instead of accrual basis.

(vested)

There were differences between quarter, but overall 9 months, it was still within expectation.

To further elaborate, as long as the overall number matches, the timing of accounting across quarterly reports, isn't a concern to me at all.

[CityFarmer]

Pretty good rating, amid the competition ahead...

Riverstone kept at ‘buy’ with higher price target of $1.21 by Maybank-Kim Eng

INGAPORE (Nov 25): Maybank ( Financial Dashboard)-Kim Eng is maintaining its “buy” call on Riverstone Holdings with a higher target price of $1.21.

In a Nov 25 report, analysts John Cheong and Gregory Yap said they remain optimistic about the prospects of the company, given that the manufacture of customised healthcare gloves remains a compelling business.

Maybank-Kim Eng recently hosted Riverstone to an non-deal roadshow with institutional clients in Malaysia and many walked away appreciative of Riverstone’s dominance of the high-end cleanroom glove market.

Riverstone’s management also shared that its close relationships with end-users via direct supplies, ability to customise solutions, best-in-class product features and stringent qualification formed strong barriers to entry.

Better-than-expected penetration of the equally profitable lower-end cleanroom glove market is expected to boost its growth. This could provide upside to the house forecasts, said the analysts.

At a time of aggressive capacity expansion by all the major healthcare glove makers in Malaysia, Riverstone’s management believes it can sustain its average selling price and margins through constant customisation and innovation to offer product differentiation; and serving quality- rather than cost-conscious customers.

Examples of its differentiated products include elongated gloves for better comfort and low-chemical-content gloves that reduce allergic reactions.

Riverstone’s 12x FY15E EPS also trails peers’ 15x average, although it is has the strongest EPS growth prospect.

“We expect catalysts from better-than-expected cleanroom glove volume, with higher ASPs and margins,” say Cheong and Yap. “Maintain BUY with SGD1.21 TP, at 15x FY15E EPS, on par with the peer average,” they add.

Riverstone is up 1.1% at 97 cents as at 10:08 a.m. local time.
http://www.theedgemarkets.com/sg/article...nk-kim-eng

[CityFarmer]

I concur with the analyst view, exclude the TP. Riverstone should be the most "well-prepared" company for the competition.

(not vested)

Riverstone Holdings kept at ‘buy’ by Maybank Kim Eng with $1.21 target price

SINGAPORE (Jan 28): Maybank Kim Eng is maintaining its “buy” call on Riverstone Holdings with a $1.21 target price.

In a Jan 28 report, Maybank Kim Eng says competition in the nitrile healthcare glove sector is expected to intensify this year on a 17% rise in capacity for 19 billion gloves by the Big Four glovemakers and Riverstone.

“Still, we think providers of differentiated products and more efficient players with strong take-up for their new capacity can continue to thrive,” say analysts John Cheong and Gregory Yap.

And although rising competition could trigger a decline in average selling prices, Maybank Kim Eng believes a stronger USD and benign input prices could mitigate any margin squeeze.

“To reflect a generally more challenging environment, we already incorporated an estimated ASP decline of 3.5% for healthcare gloves for FY15,” said the analysts.

On the other hand, ASPs for cleanroom gloves, should be resilient due to weak competition and is expected to account for 66% of estimated FY15’s gross profit, say Cheong and Yap.

“Riverstone’s 13.8x FY15E EPS trails peers’ 16x average, although it has the strongest EPS growth prospects. Maintain buy and $1.21 TP, at 15x FY15E EPS or a slight discount to peers,” said the analysts.

Riverstone is up 1 cent to $1.06 at 12:06 p.m.
http://www.theedgemarkets.com/sg/article...rget-price

[Bubbachuck]

The share price increase for the past months is justified by the continuous growth of this company.

FY2014Result

[NTL]

The share price increase for the past months is justified by the continuous growth of this company.

FY2014Result

How do you view the fast declining MYR against SGD? This is something that always bug me.

Thanks.