| Until last week, Wong Teek Son had not bought shares of his company in at least 5 years, which is as far back as we can check on the SGX website. It comes as no surprise that the executive chairman and CEO of Riverstone Holdings has been buying shares in recent days.  At Riverstone's plant in Taiping, Malaysia. NextInsight file photoWhile sectors such as airlines, F&B and hotels are ravaged by the Covid-10 outbreak, manufacturing healthcare gloves is doing just great.Singapore-listed and Malaysian-headquartered Riverstone (market cap: S$593 million at stock price of 80 cents) is benefitting from a surge in global demand for healthcare gloves. And unlike most of the Malaysian economy, glove manufacturing has been deemed essential and has been exempted from the Movement Control Order, so the production lines of Riverstone and its peers continue to work. Furiously. |
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Riverstone Holdings |
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Share price: |
Target: |
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Source: CGS-CIMB |
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As the Covid-19 viral outbreak sent stocks into a dive, Riverstone also fell -- from $1.07 on Feb 17 this year to as low as 69 cents on Mar 19. Then Mr Wong started to buy (see table).
The stock price has since rebounded to close at 80 cents yesterday (24 March).
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Buy date (2020) |
No. of shares bought |
Price/ |
Value* |
| Fri, 17 Apr | 100,000 | $1.19 | $119,200 |
| Thurs, 16 Apr | 50,000 | $1.17 | $58,400 |
| Wed, 15 Apr | 90,000 | $1.16 | $104,756 |
| Mon, 13 Apr | 40,000 | $1.13 | $45,100 |
| Thurs, 9 Apr | 110,000 | $1.13 | $124,265 |
| Mon, 6 Apr | 120,000 | $1.00 | $120,000 |
| Fri, 3 Apr | 130,000 | 99.78 c | $129,717 |
| Thurs, 2 Apr | 100,000 | 99.99 c | $99,993 |
| Wed, 1 Apr | 130,000 | 98.80 c | $128,439 |
| Tues, 31 Mar | 130,000 | 99.98 c | $129,975 |
| Mon, 30 Mar | 20,000 | 97.97 c | $19,594 |
| Fri, 27 Mar | 150,000 | 91.03 c | $136,550 |
| Thurs, 26 Mar | 160,000 | 82.85 c | $132,566 |
| Wed, 25 Mar | 160,000 | 82.81 c | $132,494 |
| Tues, 24 Mar | 130,000 | 77.70 c | $101,006 |
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Mon, 23 Mar |
210,000 |
74.11 c |
$155,635 |
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Fri, 20 Mar |
190,000 |
72.67 c |
$138,065 |
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Thurs, 19 Mar |
160,000 |
70.94 c |
$113,505 |
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Total |
2,180,000 |
90.35 c |
$1,969,666 |
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* excluding brokerage and stamp duties |
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CGS-CIMB's report on Riverstone in Feb 2020 said: "We forecast sales volume to grow 20% yoy in FY20F, with a stable product mix (volume split: 85% healthcare, 15% cleanroom)."
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Better margins |
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And chances are the gross profit margins are expanding. This is key to stronger profitability along with production capacity increases.
CGS-CIMB expects Riverstone's earnings this year to grow 20.6% to RM157.3 million.
That puts its stock (80 cents) at a PE of 11.5X forecast 2020 earnings.
