Riverstone Holdings (RS)

“We continue to like Riverstone for its attractive valuations (33% discount to Malaysia-listed glove sector average CY21F P/E of 24.7x),” says CGS-CIMB analyst Ong Khang Chuen

Riverstone “continues to be a laggard play in the glove sector, as it is trading at a 49% discount to its Malaysia-listed peers,” says CGS-CIMB analyst Ong Khang Chuen.

Earnings of Malaysia-based glove and face mask manufacturer Riverstone Holdings soared 54.3% to RM46.6 million ($15.2 million) in 1Q20, from RM30.2 million a year ago, reinforcing that protective health gear are now the hottest investment property.

The SGX-listed glove trio now has a combined market value of more than $6 billion, giving them an average total return of 29.9%.

SINGAPORE (May 22): With margins under pressure at Riverstone Holdings, analysts say growth recovery would only be seen after 1Q19 given its expansion plans are on track.

SINGAPORE (June 23): CIMB has upgraded Riverstone Holdings to “hold” from “reduce” with an unchanged target price of 91 cents as the manufacturer of cleanroom and healthcare gloves nears the completion of the third phase in its capacity expansion