@DavidSee @terence775 @victoryong @hokuan @zhexiangxd in my opinion, $SGX-AP4 RIVERSTONE is the only "investable" glovemaker in the long AND short term.

They're probably going to be one of the only few glovemakers making profit in the next few quarters.

As mentioned many times before, this is due to:

1) their exposure to a niche segment - the cleanroom glove which is still a steady rock. To recap, in the Q1 result which was a FLAT QoQ result, 42% of revenue and 60% of GP was contributed from the cleanroom glove segment. ASP for this segment is steady.

2) how well run the company is by the founder and management team.

On the second point, I'd like to highlight that unlike alot of other glovemakers in the country, during the peak of glove bullishness, they were NOT SCREAMING on 'gungho' capacity expansion like some of the local and China counterparts, which in hindsight - an event that probably spooked the market and industry and tilt the demand and supply paradigm / perception negatively in the medium term. The management simply understood the game and the business cycle and thus their conservative expansion plan n target had led them to only expand in a manner which should keep their overall utilisation at a good healthy level. (75% and higher)

I would also like to highlight that unlike some glovemakers, they did not "kill" their clients during their desperate times but increased medical glove ASP steadily moderately for longevity of business relationship, something which is being returned at the moment when situation flipped. They also took advantage of other cleanroom glovemakers who decided to chase the money and abandoned the segment when times were good in the medical glove segment. They also had always treated the workers well, even before the entire CBP / ESG issue came into play. Lastly they also did not recklessly spent their windfall cashflow nor do they keep it all to themselves.

In Q2, it seems that for medical glove segment, costs pressure supercede ASP hence it's another round of heavy margin compression. RIVERSTONE's Eco Medi will not be different, but at least their utilisation rate & business relationships should keep it afloat. This is whilst their cleanroom segment continue to strive in profitability.