Riverstone Holding (RSTON)
Previous close: S$0.60
Value: S$0.88
Rivestone revenue grew 43% to MYR 54 million in 2Q10(y-y).
Cash balance fell to MYR 44.1 million from MYR 51.3 million due to acquisition of property and higher dividends payout.
Riverstone able to increase annual production capacity to 1.8 billion gloves by end of 2010, more rapid than initial targeted capacity of 1.35 billion gloves.
Both company and industry outlook are expected to remain rosy, hence we maintain BUY rating and fair value estimate of S$0.88
Recommendation: Buy
Source: Phillip Securities
