28-01-2015, 05:55 PM
I concur with the analyst view, exclude the TP. Riverstone should be the most "well-prepared" company for the competition.
(not vested)
Riverstone Holdings kept at ‘buy’ by Maybank Kim Eng with $1.21 target price
SINGAPORE (Jan 28): Maybank Kim Eng is maintaining its “buy” call on Riverstone Holdings with a $1.21 target price.
In a Jan 28 report, Maybank Kim Eng says competition in the nitrile healthcare glove sector is expected to intensify this year on a 17% rise in capacity for 19 billion gloves by the Big Four glovemakers and Riverstone.
“Still, we think providers of differentiated products and more efficient players with strong take-up for their new capacity can continue to thrive,” say analysts John Cheong and Gregory Yap.
And although rising competition could trigger a decline in average selling prices, Maybank Kim Eng believes a stronger USD and benign input prices could mitigate any margin squeeze.
“To reflect a generally more challenging environment, we already incorporated an estimated ASP decline of 3.5% for healthcare gloves for FY15,” said the analysts.
On the other hand, ASPs for cleanroom gloves, should be resilient due to weak competition and is expected to account for 66% of estimated FY15’s gross profit, say Cheong and Yap.
“Riverstone’s 13.8x FY15E EPS trails peers’ 16x average, although it has the strongest EPS growth prospects. Maintain buy and $1.21 TP, at 15x FY15E EPS or a slight discount to peers,” said the analysts.
Riverstone is up 1 cent to $1.06 at 12:06 p.m.
http://www.theedgemarkets.com/sg/article...rget-price
(not vested)
Riverstone Holdings kept at ‘buy’ by Maybank Kim Eng with $1.21 target price
SINGAPORE (Jan 28): Maybank Kim Eng is maintaining its “buy” call on Riverstone Holdings with a $1.21 target price.
In a Jan 28 report, Maybank Kim Eng says competition in the nitrile healthcare glove sector is expected to intensify this year on a 17% rise in capacity for 19 billion gloves by the Big Four glovemakers and Riverstone.
“Still, we think providers of differentiated products and more efficient players with strong take-up for their new capacity can continue to thrive,” say analysts John Cheong and Gregory Yap.
And although rising competition could trigger a decline in average selling prices, Maybank Kim Eng believes a stronger USD and benign input prices could mitigate any margin squeeze.
“To reflect a generally more challenging environment, we already incorporated an estimated ASP decline of 3.5% for healthcare gloves for FY15,” said the analysts.
On the other hand, ASPs for cleanroom gloves, should be resilient due to weak competition and is expected to account for 66% of estimated FY15’s gross profit, say Cheong and Yap.
“Riverstone’s 13.8x FY15E EPS trails peers’ 16x average, although it has the strongest EPS growth prospects. Maintain buy and $1.21 TP, at 15x FY15E EPS or a slight discount to peers,” said the analysts.
Riverstone is up 1 cent to $1.06 at 12:06 p.m.
http://www.theedgemarkets.com/sg/article...rget-price
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡