Riverstone’s margins at risk as healthcare glove war heats up

There will be a 17% manufacturing surge this year.

Mainboard-listed Riverstone holdings is gearing up for a more intense healthcare-glove competition this year.

According to Maybank Kim Eng, competition in nitrile healthcare gloves is expected to stiffen this year on a 17% influx of capacity for 19b gloves by the Big-4 glovemakers and Riverstone.

“Any excess capacity could depress ASPs and margins, especially if a price war breaks out. Still, we think providers of differentiated products and more efficient players with strong take-up for their new capacity can continue to thrive. Some 50% of Riverstone’s healthcare gloves are differentiated and its new capacity has been fully taken up,” stated Maybank Kim Eng.