OSK-DMG reiterates buy and $1.15 target for Riverstone
Riverstone’s management met institutional shareholders at our Asean-Hong Kong Corporate Day on 26-27 June 2014.
ii) Utilisation rate for the existing production capacity remain high at over 90%, indicating strong performance
iii) margins are likely to remain healthy in the short-run but is expected to under pressure in the long run in view of the change in sales mix with healthcare gloves contributing more % of the revenue.
iv) Management is also concerned about the intensifying competition in the long run. Reiterate BUY, with TP unchanged at SGD1.15 based on 16.3x FY14 P/E (peer average).
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