RIVERSTONE, VALUEMAX @ investors' meeting: Buy, says OSK-DMG

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).

wongteekson4.14

Riverston chairman Wong Teek Son at a recent meeting in Singapore with analysts.
NextInsight file photo
Recent story: RIVERSTONE -- Buy, target $1.14, says UOB KH in initiating coverage

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?

Counter Name	Last	Change
AEM Holdings	3.450	-
Avi-Tech Electronics	0.280	-
Best World	2.450	0.020
Broadway Ind	0.114	-
China Sunsine	0.470	-
DISA	0.003	0.001
Food Empire	0.710	-
Fortress Minerals	0.360	-
Geo Energy Res	0.335	0.005
Golden Energy	0.780	-0.010
GSS Energy	0.043	-0.005
InnoTek	0.500	-0.005
ISDN Holdings	0.575	0.005
ISOTeam	0.099	-
IX Biopharma	0.122	-
Jiutian Chemical	0.082	0.001
KSH Holdings	0.340	-
Leader Env	0.062	-
Medtecs Intl	0.154	-0.004
Meta Health	0.024	-
Nordic Group	0.475	-
Oxley Holdings	0.145	-0.003
REX International	0.220	-0.005
Riverstone	0.655	-0.020
Sinostar PEC	0.180	-0.005
Southern Alliance Mining	0.600	-
Straco Corp.	0.515	0.005
Sunpower Group	0.375	0.005
The Trendlines	0.095	-
Totm Technologies	0.110	-0.003
UG Healthcare	0.184	0.002
Uni-Asia Group	0.875	-0.015
Wilmar Intl	4.060	-0.040
Yangzijiang Shipbldg	1.250	-

Counter Name

Last

Change

AEM Holdings

3.450

Avi-Tech Electronics

0.280

Best World

2.450

0.020

Broadway Ind

0.114