Riverstone

Riverstone: CIMB initaites Coverage with ADD call and $0.90 TP. The house notes that Riverstone plans to ramp up its glove-making capacity by leaps andbounds in the coming years, while demand for disposable gloves continues its inexorable upward climb. Its leading position within the cleanroom segment is unique among its peers, while its strong balance sheet and dependable cash flow back up its ambitious expansion plan. Together with its glove customisation capability, Riverstone is set to capture a larger piece of the disposable gloves market. The house initiate coverage with an Add rating and target price of S$0.90, based on 12.1x (1SD above historical average) CY15 P/E. Potential catalysts could come from continued highutilisation rates even with the huge capacity growth, and a pickup in cleanroom manufacturing as mobile devices continue to proliferate.