SINGAPORE (Oct 2): Glove maker Riverstone Holdings is in good position to face rising healthcare competition, says Maybank Kim Eng in an Oct 1 note. The research house is maintaining its “buy” rating with an unchanged target price of $2.12.

“To be conservative, we have factored in a 15% USD-denominated ASP decline for FY16 in the context of a USD-MYR rate of 4.12,” says Maybank, “[But] Management shared that it should not be difficult to fill up its new capacity in 3Q16, if it is willing to pass on USD benefits.”

“It has been turning down many orders due to capacity constraints,” adds the research house.

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