RIVERSTONE: How it became a well-recognised stock

THE GOLD MEDAL for an investor relations campaign went to Financial PR last night at the PR Awards event held at Shangri-La Hotel.

Here we outline how that achievement was made. The listed company that benefitted from the campaign was Riverstone Holdings.

 
Strategy:

Upon identifying the respective challenges, a perception study was carried out among analysts and funds to understand the market’s level of understanding of Riverstone. The key messages and positioning of the company were consistently sharpened in order to keep up with the fast-changing expectations of the investment community.

Workers stripping off newly-produced gloves from moulds @ Riverstone's factory in Taiping. NextInsight file photo.With a clear investment thesis of a growth play supported by consistent dividend payout since IPO, we centred communication on the five-year expansion plan of the Group, which is expected to more than double production capacity from 3.2 billion pieces per annum to 8.2 billion pieces by 2018. With a visibility of the expected earnings growth coupled with the management’s ability to consistently deliver strong financial performance quarterly, we gradually gained conviction among analysts and funds.

Further to market intelligence on the industry, a holistic understanding of the company is derived through detailed understanding of the business operations and the development of a financial model. This not only reinforces a strong investment thesis for Riverstone but more importantly refines it over time. With a close observation of the industry peers’ performances and corporate developments, the IR team allows the management to consistently stay ahead and be prepared.

Apart from handling institutional investors and analysts, the IR team ensures prompt responses to queries from minority shareholders so as to uphold transparency for all stakeholders.

Execution:

Supported by various stakeholders, the IR team adopted a multi-prong approach targeting both institutional and retail investors. Privileged to partner both local and foreign brokerages to organise non-deal roadshows (NDRs) throughout the year, it ensures consistent engagement with the investment community.

In Taiping: Analysts and fund managers discuss with Riverstone executive chairman Wong Teek Son after checking out its factory. NextInsight file photo.
Apart from quarterly briefings post financial results announcement and the NDRs, site visits are organised frequently for its various manufacturing plants in KL and Taiping where the new factory housing the expansion sits.

With regular updates from the management headquartered in Malaysia, the IR team based in Singapore represented the company for analyst and fund meetings to help them learn more about Riverstone. The delegation of IR activities to our IR team enabled the management to focus on business operations, which are critical in enhancing shareholder value.