Post Reply
1-11 of 11
Riverstone just announced the 2Q result and also dividend payment!!!
battaouchai got c or not?
|
BUY
|
Closing Price
SGD 0.66
12-month Target Price
SGD 0.95 (+44%)
|
|
· Strong demand from semiconductor and healthcare customers drive revenue to record quarterly high. Outlooks for these industries remain optimistic.
· Revenue doubled to Rm 52.8 million, while earnings jumped to 3.39 sen (1.45 cent), from 0.58 sen. (0.24 cent).
· Net asset value is 58 sen, from 55.4 sen in 2009 and firm maintains net cash position of Rm 51 million.
· We maintain our BUY rating on the counter and we increase the target price to S$0.95
Riverstone’s fortunes experienced a positive turn as reflected by its remarkable first quarter results. The spectacular headline figures were also in part, due to 1Q09 being its worst performing quarter since its IPO listing. Revenue has also exceeded our estimates as the firm is supposed to be operating at full capacity since the previous quarter.
Positive out look on the industry
According to the World Semiconductor Trade Statistics, the industry outlook is positive with growth estimates of 8.2% to 9.5% in Asia Pacific. The firm not only has expanded businesses in the semiconductor and healthcare segment through acquiring more clients, it also has a wider geographical outreach as it gains customers from Korea, Japan, Taiwan and US.
Valuation and Recommendation
We have not changed our valuation method and continue to price it based on 15X FY10 EPS. As we priced in new developments and reviewed our conservative estimates for the counter, we find the need to upgrade the share price.
Four key reasons why the company warrants a higher target price.
§ Riverstone increased selling price by 5% to 10% on the back of rising raw material cost but by being able to maintain gross profit margins, the price increments will contribute to bottom line, by boosting the earnings per share.
§ We increase the utilization rate for the firm’s existing production capacity and forecast full utilization rate for additional capacity coming on board in 2010.
§ We include the production capacity contributed through tie ups with a third party
§ We revise our conservative estimates to reflect a more bullish view.
We are maintaining our Buy rating but upgrading our fair value estimate to S$0.95 from S$0.73, representing a potential upside of 44% from the closing price.
Source: Company, Phillip Securities Research,
*exchange rate of SGD$0.4285/MYR
|
|
apasamy ( Date: 05-Mar-2010 13:21) Posted:
|
BUY
(unchanged)
Closing Price
SGD 0.635
12-month Target Price
SGD0.73 (+15%)
Major Shareholders (5 March 10)
%
1 Wong Teek Son 50.63%
2 Lee Wai Keong 12.98%
3 Wong Teck Choon 3.97%
Analyst
Magdalene Choong
Tel : +65 6531 1791
Fax : +65 6536 4435
Email :
magdalenechoongss@phillip.com.sgWeb :
www.poems.com.sgMICA (P) 153/01/2010
Ref No: SG2010_0079
Stellar Recovery
Riverstone Holdings Limited reported revenue increase of 43.7% qoq, to RM 47.4 million. Yoy,
revenue was up 10.2% to RM 155.7 million. Riverstone’s 4Q09 net profit came in at RM 11
million, up 11.2% qoq and 89.5% yoy. Full year net profit was up 21.1%, to RM 29.5 million
compared to RM 24.4 million a year ago. Both revenue and net profit were considered stellar
turning to gold again. 4Q09 net profit increase 89.5% with DPS = 3.5%.
Both Phillip and NRA call for BUY with target price $0.71- 0.75.
GO for GLOVE counter!!
Merry X'Mas to all.... Just to let guys here knows that this 
Riverstone had been sidelined A.K.A sleeping for very very long time and recently make a debut which hits it's own 52 Weeks High........
This maybe a good chance for it to soar to new horizons???? Let us see what can this counter perform on WED....
Merry X'mas to all........
From Philips this afternoon!!!!!!!!!
Plant Visit.
Recently, by invitation from the Management, we visited their main production plant located at Bukit Beruntung, Selangor, Malaysia. It was indeed an eye opener as we were introduced to and given an insight into its operation and production facilities. We were particularly impressed with the highly controlled cleanroom production and packaging facilities.
We initiated coverage on the counter during end of March 07, with the view of holding it as a long-term investment and based on Riverstone Holding?s ("RS") ability to leverage on the potential growth in the semiconductor and hard disc drive ("HDD") sectors, which will result in the demand for cleanroom consumable products.Company Background.
Core products include cleanroom nitrile gloves, which contribute about 80% of total Group revenue and cleanroom natural rubber gloves, which contribute about 10%. The remaining relates mainly to other cleanroom products such as finger cots, packaging materials, face masks, face pouches, hoods, caps, jumpsuits, shoe covers, boots, critical task wipes and swabs.
Established in 1989, it is principally engaged in the production, sale and distribution of cleanroom consumable products, specializing in cleanroom gloves production primarily for use in class 10 and class 100 cleanroom environment.Simple and yet complicated production process.
These products are simplistic in nature but yet the production and assembly have to be done under strict, highly controlled and critical environment. They are widely used only in high-technology manufacturing industries. Due to niche market exposure and an essential item in the critical environment, the Group is able to command higher margins.Group production output. Currently, the Group is producing about 720 million cleanroom gloves, 600 million and 120 million from its Malaysia and Thailand plants respectively. The Group will be adding one more production line in Thailand to bring total Group production to 780 million by end of CY07.