Date of Report

October 1, 2024

Broker Name

UOB Kay Hian

Company Overview

Riverstone Holdings is a Singapore-based manufacturer specializing in the production of high-quality rubber gloves. The company serves various industries, including healthcare, food processing, and industrial sectors, and is known for its commitment to quality and innovation in the production of gloves.

Recent Developments

The report highlights that the Chinese government has recently introduced significant stimulus measures aimed at revitalizing its economy. These initiatives are expected to boost demand across various sectors, including healthcare, where Riverstone operates, thereby enhancing the growth potential for the company.

Revenue Exposure to China

Riverstone has substantial revenue exposure to China, particularly through its sales of medical and industrial gloves. The anticipated increase in healthcare spending and demand for medical supplies as part of the government’s economic initiatives could positively impact Riverstone’s sales and revenue growth.

Investment Recommendation

• Recommendation: BUY
• Current Price (S$): 0.885
• Target Price (S$): 1.16
• Potential Upside (%): 31.1%

Market Context

With the expected recovery in healthcare spending driven by the government’s economic initiatives, Riverstone is well-positioned to capitalize on increased demand for its glove products. The company’s strong market presence and commitment to quality further enhance its competitive advantage in the healthcare sector.

Conclusion

Riverstone Holdings’ focus on manufacturing rubber gloves and its significant exposure to the recovering Chinese economy present a compelling investment opportunity. The anticipated growth in healthcare demand positions Riverstone for substantial gains in the coming years.