$SGX-AP4 RIVERSTONE - Among glove makers, Riverstone has most attractive margins.

$TOPGLOV / 7113 (TOP GLOVE CORPORATION BHD) despite being the world's largest glove manufacturer, had the lowest profit margin and returns within peer group.

BT had a coverage on glove this morning which highlights some financial ratios across the 4 big players listed in KLSE, 2 malaysian players listed in SGX and Sri Trang listed in TH.

Whilst the ratio makes for a good reading, it's still somewhat backward looking, as the data covers past 12 months figures. As we all know, ASP for nitrile medical glove is now back to pre-Covid or for some, is even lower than pre-Covid prices. Perhaps, it's more accurate to look at pre-Covid data then?

Here's a link to my post in May 2020, a time still early within the crazy bull glove run. https://stockbit.com/post/3846509

In the post I highlighted the superior margin Riverstone had PRECOVID period. I mentioned:

"RIVERSTONE is actually the fifth largest listed Malaysian glove maker after the Malaysian top 4 manufacturers. Its bigger than $COMFORT and $RUBEREX. It also have ROE and profit margin comparative to only $HARTA / 5168 (HARTALEGA HOLDINGS BERHAD)..

Comparison.. valuation & profitability (TTM)
PE / ROE% / Profit Margin%:

Harta: 59.8x / 16.6% / 16.1%
Top Glove: 47.5x / 9.6% / 7.7%
Ruberex: 37.8x / 5.5% / 5.1%
Supermax: 37.2x / 8.9% / 8.3%
Kossan: 32x / 15.8% / 10.1%
Comfort: 28.7x / 10.7% / 6.5%
UG Healthcare: 23.5x / 3.9% / 2.4%
Riverstone: 20.9x / 16.5% / 13.2%..."

RIVERSTONE and HARTA has the best net margin as of 30th March 2022, during normalisation of ASP, as per the article. More importantly, they actually also had the top 2 best margin PRE COVID.

Tagging: @Jasonsum @FIRLGuys @leonjakelim @maxtan @Jinnsern @mengteck @wsk20 @zhexiangxd @mikeleong @andy721