Riverstone

Riverstone: CIMB expects better 2H
-The phase III expansion capacity (6 lines; totaling 1bn pieces p.a.) is slated to start contribution in 2H16.
- After a slower 1Q16, demand for cleanroom gloves has shown signs of improvement in 2Q; management expects demand to pick up further in 2H16.
- The healthcare glove segment should continue to face ASP and margin pressure due to stiff competition.
- Upgrades Riverstone from Reduce to Hold, with an unchanged target price of S$0.91, still pegged to the peer average of 17x CY17 core P/E.