Riverstone Holdings

[(cy)]

while Riverstone has outperformed its Malaysian peers in terms of share price performance, they came from a lower valuation base compared to say Top Glove or Hartalega which are much larger competitors and command richer valuations (at least P/E wise).

on the company, I believe Riverstone was already in the cleanroom gloves space for mobile, tablets and LCD few years ago but given the fragmented market, there is greater room for growth compared to the higher-specs Class 10/100 cleanroom gloves where they already command more than 50% of the market's share. these higher-specs gloves are supplied to the HDD and semi-conductor manufacturers.

for upcoming 1Q2015's results, Riverstone should see positive contributions from the 1st phase of the expansion so top and bottom line figures should grow yoy from 1Q2014 or even qoq from 4Q2014 but margins would be something to watch for. separately, I believe Riverstone uses mostly butadiene as its raw material for the manufacture of nitrile gloves and not so much of latex. nonetheless, given the continued appreciation of USD against MYR, it will surely benefit Riverstone.

(not vested but follows the company closely)