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20-04-2026, 10:33 PM
2025 AGM
20 April 2025
Share price $0.77
Key Takeways (to be read in conjunction with the AR and management responses):
Rapid rise in raw material prices. The shortage of raw material has caused higher product cost, which then passed on to customer via price increase for both Cleanroom Glove CG and Healthcare Glove HG. Customers are less resistant to price change, they are more concerned of supply continuity. There is a shortage of glove in the market.
In fact some HG customers had placed deposits to secure their orders.
https://www.channelnewsasia.com/east-asi...ch-6060901
Inventory. In the face of raw material shortage, suppliers are doing allocation. For now, Riverstone interests is somewhat protected by its long business relationship. Current raw materials inventory can last from now April to June for HG+CG. Last till August if all allocated to CG. CG is always the company priority. Management is prepared to compromise on HG production.
FX risk – USD depreciation.
This risk remains. USA, as a major market (32% revenue share), is traded in USD. Management is working towards local currencies billings such as SGD, MYR, THB in the countries they operate. Riverstone hedges 50% of the monthly revenue. All latex in traded in USD, providing a natural hedge of about 25%. As a whole about 30% hedge.
US Market and Costing
It takes a lot of money and time to build a team for an overseas factory. The manufacturing cost of glove in USA is about double of Riverstone selling price. Riverstone is not affected tariffs, sales in FOB term. All in, it is still beneficial to operate in Malaysia.
Capacity
The annual production capacity guided by SIAS is not right, as some aged lines has been decommissioned. The current production capacity is CG 20% HG 80% (I turn standard/generic 80% customized 20%)
Revenue and GP
Revenue split CG 50% HG 50%.
GP split CG 70% HG 30%.
Riverstone has a volume growth in HG, both generic and customized HG. Just that the lower ASP and USD FX impact pulled down the overall HG revenue.
Capex
No major capex planned. In 2026, replacement capex on 6 aged lines (10 years old) amounting to MYR 30 million.
R&D
Riverstone guided about 3% of revenue budgeted for R&D.
Mr Wong’s Philosophy
Mr Wong said that there is always demand for gloves, it is very easy to grow revenue just by accepting customers price. The success key is to meet customer needs in the most efficient way - not chasing volume at the expense of margin.
Chinese Competition
Chinese players are enclosing on CG market, but these are the low end CG products (not Riverstone focused area). HG Chinese players expanding factories in Vietnam, Thailand, not too concerned as they may faced culture issue and difficulties with the authorities. It is the Malaysia HG players that Riverstone has to watch closely.
Management Body Language
Management seems relaxed, unhurried at the AGM after a difficult year. Mr Wong said that life is busy in office. They do have more meetings with their suppliers and customers.
Above is documented the best I could, do treat with caution as I may not have pick the AGM content correctly.
Vested a small position.
20 April 2025
Share price $0.77
Key Takeways (to be read in conjunction with the AR and management responses):
Rapid rise in raw material prices. The shortage of raw material has caused higher product cost, which then passed on to customer via price increase for both Cleanroom Glove CG and Healthcare Glove HG. Customers are less resistant to price change, they are more concerned of supply continuity. There is a shortage of glove in the market.
In fact some HG customers had placed deposits to secure their orders.
https://www.channelnewsasia.com/east-asi...ch-6060901
Inventory. In the face of raw material shortage, suppliers are doing allocation. For now, Riverstone interests is somewhat protected by its long business relationship. Current raw materials inventory can last from now April to June for HG+CG. Last till August if all allocated to CG. CG is always the company priority. Management is prepared to compromise on HG production.
FX risk – USD depreciation.
This risk remains. USA, as a major market (32% revenue share), is traded in USD. Management is working towards local currencies billings such as SGD, MYR, THB in the countries they operate. Riverstone hedges 50% of the monthly revenue. All latex in traded in USD, providing a natural hedge of about 25%. As a whole about 30% hedge.
US Market and Costing
It takes a lot of money and time to build a team for an overseas factory. The manufacturing cost of glove in USA is about double of Riverstone selling price. Riverstone is not affected tariffs, sales in FOB term. All in, it is still beneficial to operate in Malaysia.
Capacity
The annual production capacity guided by SIAS is not right, as some aged lines has been decommissioned. The current production capacity is CG 20% HG 80% (I turn standard/generic 80% customized 20%)
Revenue and GP
Revenue split CG 50% HG 50%.
GP split CG 70% HG 30%.
Riverstone has a volume growth in HG, both generic and customized HG. Just that the lower ASP and USD FX impact pulled down the overall HG revenue.
Capex
No major capex planned. In 2026, replacement capex on 6 aged lines (10 years old) amounting to MYR 30 million.
R&D
Riverstone guided about 3% of revenue budgeted for R&D.
Mr Wong’s Philosophy
Mr Wong said that there is always demand for gloves, it is very easy to grow revenue just by accepting customers price. The success key is to meet customer needs in the most efficient way - not chasing volume at the expense of margin.
Chinese Competition
Chinese players are enclosing on CG market, but these are the low end CG products (not Riverstone focused area). HG Chinese players expanding factories in Vietnam, Thailand, not too concerned as they may faced culture issue and difficulties with the authorities. It is the Malaysia HG players that Riverstone has to watch closely.
Management Body Language
Management seems relaxed, unhurried at the AGM after a difficult year. Mr Wong said that life is busy in office. They do have more meetings with their suppliers and customers.
Above is documented the best I could, do treat with caution as I may not have pick the AGM content correctly.
Vested a small position.
