Excerpts from UOB KH report

Analysts: John Cheong & Singapore Research Team 

Top picks: Riverstone, Food Empire, Frencken

Riverstone. We expect Riverstone to post much stronger results for 2H20 as ASPs for healthcare gloves continue the uptrend (+10% mom in July and Aug 20) as global glove demand continues to outpace supply.

strip9.14Additionally, with an ASP hike already in place for 
Jun-Jul 20, the robust demand for clean room gloves has led to a second ASP hike that management expects in Aug-Sep 20.

At the current price, we believe there is room for 
upside as Riverstone is trading at only 15.8x 2021F PE, below the sector’s 19x 2021F PE.

• Food Empire. Trading at 8.7x 2021F PE vs >20x for its regional peers, valuation is due for a re-rating in our view.

maccoffee variants

Although some of its core markets in Eastern Europe are still under a 
partial lockdown, the restrictions are much less stringent compared to Mar-Apr 20 and have gradually eased since May-Jun 20.

This is evident through the significant improvement in the 
retail sales for countries such as Russia (retail food sales: Jul 20: -2.2% yoy, Apr 20: -9.2% yoy), Ukraine (retail trade turnover: Jul 20: +7.8% yoy, Apr 20: -11.6% yoy) and other CIS markets.

Furthermore, we believe the group’s sales should be more resilient against an 
economic slowdown given that its products are consumer staples with relatively inelastic demand.

Frencken europe youtube

• Frencken Group. Its 2Q20 earnings were in line with our expectations.

Despite supply chain 
disruptions in 1H20, the strong showing from group’s semiconductor segment revenue in 1H20 (+73.6% yoy) reflected strength in demand for both front-end and back-end equipment and management expects a better 2H20 for the segment, relative to 1H20.

The 19% 
retracement in share price since the beginning of August presents a good buying opportunity, in our view.

At the current price, the stock trades at 8.7x 2021F PE which 
compares favourably to the current peers’ average of 12.9x.

Full report here. 


0 #1 mr tuan 2020-10-01 13:31
toi muon ky hop dong voi so luong lon. mong hoi am. thanks

Share Prices

Counter NameLastChange
AEM Holdings3.910-0.060
Avi-Tech Electronics0.400-0.005
BH Global0.295-
China Sunsine0.5100.005
Food Empire0.840-0.010
Fortress Minerals0.620-0.010
Golden Energy0.385-0.005
GSS Energy0.0700.001
ISDN Holdings0.765-0.015
IX Biopharma0.230-
KSH Holdings0.365-
Leader Env0.085-0.001
Medtecs Intl0.8050.005
Moya Asia0.0710.002
Nordic Group0.315-
Oxley Holdings0.2300.005
REX International0.210-
Southern Alliance Mining0.990-0.010
Sri Trang Agro1.570-
Straco Corp.0.5200.005
Sunpower Group0.670-0.010
The Trendlines0.1020.002
UG Healthcare0.565-
Uni-Asia Group1.0000.030
Wilmar Intl4.350-0.030
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Yinda Infocomm0.230-

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