Excerpts from analysts' reports
OSK-DMG reiterates buy and $1.15 target for Riverstone
Riverstone’s management met institutional shareholders at our Asean-Hong Kong Corporate Day on 26-27 June 2014.
Key takeaways from the meetings are: i) renovation of the new plant is on track with trial production starting in 3QFY14 and full production to be ready in 4QFY14,
ii) Utilisation rate for the existing production capacity remain high at over 90%, indicating strong performance
iii) margins are likely to remain healthy in the short-run but is expected to under pressure in the long run in view of the change in sales mix with healthcare gloves contributing more % of the revenue.
iv) Management is also concerned about the intensifying competition in the long run. Reiterate BUY, with TP unchanged at SGD1.15 based on 16.3x FY14 P/E (peer average).
Riverston chairman Wong Teek Son at a recent meeting in Singapore with analysts.
NextInsight file photoRecent story: RIVERSTONE -- Buy, target $1.14, says UOB KH in initiating coverage
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OSK-DMG reiterates buy and $0.56 target for ValueMax
Valuemax's management met our institutional shareholders at our Asean-Hong Kong Corporate Day on 27 June 2014.
Key takeaways from the meetings are
i) Expansion plans are on track with 20 outlets in Singapore and 8 in Malaysia by end of FY14. They are still sourcing for the high-end pawnbroking outlet location which will be targeted to open by the end of the year.
ii) Earnings turnaround are on track with management seeing an increase in total general loans given out. 2H14 results will be expected to release in August 2014.
iii) Key concerns remains mainly with liquidity and the stability of gold prices.
iv) Reiterate BUY with a 1.9x FY14F P/BV of SGD0.56.
Recent story: More upside for ComfortDelGro, SMRT; Pawnbrokers to turn around?
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