- Despite a higher ROE and dividend yield, Riverstone's share price is trading at an undemanding 17x 2025F P/E vs peers’ average of 47x. The rise in US FDA import alerts flagging quality issues with China medical gloves, compounded with the US tariff hike, is likely to benefit Malaysian glove makers like Riverstone.
- - Read this at SGinvestors.io -
Quarterly record-high US FDA import alerts on China glove makers.
- US Food and Drugs Administration (FDA) import alerts on China glove makers due to quality concerns have hit quarterly highs in 4Q23 and 1Q24. This means that FDA has enough evidence for detention without physical examination (DWPE) of products that are in violation of its laws and regulations.
- - Read this at SGinvestors.io -
Ripple effects from Red Sea Crisis.
- The Red Sea has led to many shipping companies rerouting their ships on longer journeys and therefore, delays in shipment deliveries. This particularly impacts international shipments from Southeast Asia to the US and Europe.
- Riverstone's management shared that it had faced some shipping delays due to port congestion and increased vessel waiting times since April, but observed slight easing in July.
Potential trade diversion from China to Malaysia.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-07-25
Read also UOB's most recent report:
2024-11-13 Riverstone - 3Q24 Results In Line; Healthy Outlook Ahead With Capacity Expansion.
Price targets by other brokers at Riverstone Target Prices.
Listing of research reports at Riverstone Analyst Reports.
Relevant links:
Riverstone Share Price History,
Riverstone Announcements,
Riverstone Dividends & Corporate Actions,
Riverstone News Articles
