Riverstone Holdings (RSTON SP): Looking past the pandemic

  • BUY Entry – 1.30 Target – 1.50 Stop Loss – 1.22

  • Riverstone Holdings Limited produces, sells, and distributes clean-room products for use in highly controlled and critical environments. The company’s products include nitrite and natural rubber gloves and clean-room packaging materials and finger cots, as well as face masks, face pouches, hoods, caps, jumpsuits, and swabs. 

    RS Glove Stripping

  • Looking past the pandemic. While the pandemic-induced demand for gloves in 2020 helped push Riverstone’s share price to a high of S$2.35 (80% higher than its current share price of S$1.33), the company’s business outlook is likely to be driven by production of cleanroom products, which are more sustainable and typically command higher margins.

    These products are primarily used in semiconductor, pharmaceuticals, biotech, life science, aerospace and military applications. 

  • Consensus estimates are still overall bullish despite recent downgrades. There are 4 BUYS / 2 HOLDS / 0 SELL, and a 12m TP of S$1.62 (+22% upside potential), despite recent downgrades by Nomura (Neutral TPS$1.37) and RHB (Neutral TP$1.30).

    FY2021 EPS is forecasted to surge 118% YoY before declining around 50% YoY in FY2022, with the decline largely attributed to the unsustainably high base of FY2021.

    Riverstone currently trades at 4x / 8x FY2021 / FY2022 PE, which is an attractive valuation.

Share Prices

Counter NameLastChange
AEM Holdings4.380-0.030
Avi-Tech Electronics0.295-0.005
Broadway Ind0.153-0.001
China Sunsine0.475-0.005
DISA0.0040.001
Food Empire0.5550.005
Fortress Minerals0.3750.025
Geo Energy Res0.410-0.020
Golden Energy0.5400.010
GSS Energy0.056-
InnoTek0.435-0.005
ISDN Holdings0.505-0.010
ISOTeam0.105-
IX Biopharma0.169-
Jiutian Chemical0.094-0.002
KSH Holdings0.350-
Leader Env0.061-
Medtecs Intl0.186-0.002
Meta Health0.029-
Moya Asia0.062-0.001
Nordic Group0.4250.005
Oxley Holdings0.184-0.002
REX International0.245-0.005
Riverstone0.755-0.050
Sinostar PEC0.220-
Southern Alliance Mining0.6700.030
Straco Corp.0.390-
Sunpower Group0.3850.010
The Trendlines0.0960.002
Totm Technologies0.124-0.002
UG Healthcare0.210-0.010
Uni-Asia Group1.080-
Wilmar Intl4.180-0.020
Yangzijiang Shipbldg0.960-0.015

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 334 guests and no members online