UOB Kay Hian
19 June 2025

Riverstone Holdings and Singapore Market Insights: Key Takeaways, Sector Trends, and Trading Strategies

Market Overview: Indices and Economic Assumptions

The Singapore Daily market report reveals a mixed performance across global and regional indices. Key highlights include:

• Dow Jones Industrial Average (DJIA): 42,171.7 (-0.1% 1D, -1.6% 1W, -1.1% 1M, -0.9% YTD)
• S&P 500: 5,980.9 (flat 1D, -0.7% 1W, +0.4% 1M, +1.7% YTD)
• FTSE 100: 8,843.5 (+0.1% 1D, -0.2% 1W, +1.8% 1M, +8.2% YTD)
• FSSTI (Singapore): 3,920.8 (-0.3% 1D, flat 1W, +1.2% 1M, +3.5% YTD)
• HSI (Hong Kong): 23,710.7 (-1.1% 1D, -2.7% 1W, +1.6% 1M, +18.2% YTD)
• Nikkei 225: 38,885.2 (+0.9% 1D, +1.2% 1W, +3.7% 1M, -2.5% YTD)

Key commodity prices:

• Brent Crude: US\$77/bbl (+0.3% 1D, +9.9% 1W, +17.3% 1M, +2.8% YTD)
• Crude Palm Oil (CPO): RM4,063/mt (+0.3% 1D, +3.2% 1W, +4.3% 1M, -17.4% YTD)

Economic Assumptions

Top Trading Turnover and Stock Movers

Highest Turnover (5-day ADT):

• DBS Group Holdings: S\$44.23 (-0.5%), S\$178.7m
• Singapore Telecommunications: S\$3.97 (+1.0%), S\$87.5m
• Oversea-Chinese Banking Corp: S\$16.04 (-0.3%), S\$80.1m
• United Overseas Bank: S\$34.83 (-0.3%), S\$67.4m
• Singapore Airlines: S\$6.85 (-0.4%), S\$46.1m

Top Gainers:

• Hong Leong Asia: S\$1.37 (+5.4%), S\$1.5m
• Hutchison Port Holdings Trust: S\$0.16 (+3.1%), S\$0.6m
• Thomson Medical Group: S\$0.04 (+2.4%), S\$0.1m
• Stoneweg Europe Stapled Trust: S\$1.57 (+1.9%), S\$0.7m

Top Losers:

• SRI Trang Gloves Tha-Foreign: S\$0.22 (-40.5%)
• Digital Core Reit Management: S\$0.50 (-2.9%), S\$1.2m
• Wilmar International: S\$2.93 (-2.7%), S\$14.5m
• Top Glove Corp: S\$0.22 (-2.2%), S\$0.9m
• Starhill Global REIT: S\$0.50 (-2.0%), S\$0.6m

Riverstone Holdings: Company Update and Outlook

Ticker: RSTON SP
Share Price: S$0.675
Target Price: S$0.710 (previously S$0.820)
Rating: HOLD
Upside: +3.6%

Company Overview

Riverstone Holdings produces and distributes cleanroom products—including nitrile and natural rubber gloves, cleanroom packaging, finger cots, face masks, pouches, hoods, caps, jumpsuits, and swabs—used in highly controlled environments in healthcare, electronics, and other critical sectors.

• Market Cap: S\$1,000.5m (US\$778.6m)
• 52-week high/low: S\$1.12 / S\$0.67
• Major Shareholders: Wong Teek Son (51.3%), Lee Wai Keong (8.8%)
• FY25 NAV/Share: RM0.98
• FY25 Net Cash/Share: RM0.42

Key Takeaways from Malaysia NDR

• Stronger Cleanroom Glove Recovery Anticipated in 2H25: Management expects double-digit growth in cleanroom glove segment volume in the second half as US trade tariff uncertainties fade and customers resume orders. Cleanroom gloves account for about 70% of earnings, despite being only 30% of output. About 20% of cleanroom gloves are supplied to the US, with the rest to Asia and Europe.
• Healthcare Glove Competition Remains Intense: The segment faces ample supply and significant price competition, especially from Chinese and Malaysian peers. Riverstone focuses on less price-sensitive clients and product quality.
• Product Customisation and Direct Customer Engagement: To maintain profitability and differentiation, Riverstone is intensifying customisation and direct engagement with end-users in cleanroom gloves.
• Forex Impact: Weaker USD/MYR affected 1Q25 performance, offsetting healthy volume growth (sales volume +14% yoy). This trend is expected in 2Q25, with recovery expected in 2H25.

Operational and Financial Highlights

• Operational Ramp-up Delayed by Gas Supply Constraints: Expansion plans (6 cleanroom, 6 healthcare lines) have been hampered by a gas shortage, likely tied to a fire at Petronas’ Selangor plant. Three healthcare lines are operational, but the rest are delayed to July 2025.
• Dividend Policy: With RM760m cash (18% of market cap) and RM84m operating cash flow (+11% yoy), Riverstone aims to maintain a payout ratio above 100% for 2025-2027, continuing shareholder rewards.
• Valuation: Target price cut to S\$0.71 (from S\$0.82), pegged at 16x 2025F PE (0.5SD above long-term mean) due to near-term headwinds, including currency volatility and elevated raw material costs.
• Share Price Catalysts: Upside potential from stronger-than-expected glove demand and higher dividends.

Key Financials

Peer Comparison

Traders’ Corner: Technical Analysis and Trading Ideas

First Resources (FR SP) – Trading Sell

• Entry Range: S\$1.44–1.45 (last price: S\$1.43)
• Target Price: S\$1.29
• Protective Stop: S\$1.49
• Technical View: The stock remains in a strong downtrend, capped by thick cloud resistance. The conversion and base lines are in bearish crossover, and the MACD is negative. Increasing odds for a further decline towards S\$1.29 over 1–2 weeks.
• Note: Despite the technical SELL, institutional research rates FR a fundamental BUY with a target of S\$1.65.

DBS Group Holdings (DBS SP) – Trading Sell

• Entry Range: S\$44.65–44.70 (last price: S\$44.23)
• Target Price: S\$41.20
• Protective Stop: S\$45.95
• Technical View: Price has potentially topped at S\$45.55 and closed below the 20-day moving average. RSI is below neutral, suggesting downside risk to S\$41.20 in the coming 1–2 weeks.
• Note: Institutional research maintains a fundamental HOLD rating with a target of S\$40.90.

Conclusion: Navigating Opportunities Amid Uncertainty

Singapore’s market landscape remains dynamic amid global uncertainties. Riverstone Holdings stands out for its cleanroom glove focus and robust cash position, though faces headwinds from currency volatility, raw material costs, and operational delays. Investors should consider both fundamental and technical perspectives, especially in volatile sectors, and watch for catalysts such as demand recovery and dividend surprises.
For traders, First Resources and DBS Group Holdings present near-term downside technical setups, though longer-term institutional views may differ. Vigilance and a balanced approach, blending technical and fundamental insights, remain essential for success in the current environment.