Riverstone

Riverstone’s revenue rises 2.0% to RM209.8 million on the back of higher glove orders for 1QFY2018

  Despite the impact from foreign exchange rate volatility which led to declining average selling prices, improved cost controls and operational capabilities mitigated the decline in net profit to RM31.1 million.
Gross profit margin is maintaining at a healthy rate of 22%.

  Underpinned by robust positive operating cash flow generation of RM43.5 million, the Group’s balance sheet continues to strengthen as net cash position improved to RM111.6 million  Maintains growth trajectory as strong demand propels Phase 5 of the Group’s expansion plans where total annual production capacity will increase 18.4% to 9.0 billion pieces of gloves by end-FY2018

 Overall Net profit is down 7.6% with RM31.1m ,and diluted EPS of RM 4.19 cents. EPS is about 1.42 cents (S).

 Let's say whole year eps of 5.68 cents(s). Current price at 98.5 cents , PE of 17.34 times I think is trading at full value .

theintelligentinvestor

Reply to clim : Yeah, the initial question from sporeshare is which counter has good earnings power

theintelligentinvestor

Reply : Don't take this as detailed analysis, just my 2c.

1) ROE > 20% for the past 5 years
2) CAGR 2013-17 - Revenue 23%, Earnings 22, Equity 18%. Healthcare glove expected to grow at 8-12% in the next 3 years.
3) Debt - CR 3, Debt/Eq 4%
4) Smallest among the 5 glove manufactures, but their EBIT is clearly superior, ie 2-4x of the other 4, Hartalega, Top Glove, Kossan & Supermax.
5) Lastly, as compared to the others in the list. Riverstone product has a bigger global market than the other that are more local or within regional.

Riverstone manufactures and distributes cleanroom and healthcare gloves under the RS brand in Malaysia. It also produces cleanroom finger cots, packaging bags, face masks, and wipers; and other consumables, such as hair nets, static dissipative shoes, safety booties, shoe covers, ESD rubber bands, sticky mats and rollers, swab-polyester and microfibers, antistatic gloves, static dissipative shoes, cleanroom coveralls, and cleanroom papers. In addition, the company trades in latex products; and distributes cleanroom products. Further, Riverstone Holdings Limited offers healthcare products comprising white, blue, black, and accelerator free nitrile exam gloves. Its products are used in the hard disk drive, semiconductor, and healthcare industries. The company also exports its products in Asia, Europe, and the Americas. Riverstone Holdings Limited was founded in 1989 and is based in Singapore.