RGT Bhd (RGTBHD 9554), riding on sanitiser dispenser demand caused by Covid-19 [$$bill]

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RGT Bhd (RGTBHD 9554), riding on sanitiser dispenser demand caused by Covid-19 [$$bill]



This is a quick update from my previous RGT Bhd post:

RGTBHD (9954), the newly discovered Covid-19 thematic play [$$bill](https://klse.i3investor.com/blogs/dollardollarbill/2020-05-21-story-h1507774981-RGTBHD_9954_the_newly_discovered_Covid_19_thematic_play_bill.jsp)


Brief intro:

How is RGT benefiting from sanitiser and hand soap dispensers?


RGT’s major customer is Newell Brands Inc, which contributes to the bulk of RGT’s revenue.


Newell owns Rubbermaid Commercial Products, which sells sanitiser dispensers and hand soap dispensers that is manufactured by RGT.


Newell has a few business segments, but its Commercial segment (which Rubbermaid Commercial Products is under) is seeing strong demand.


What I would like to highlight in this post is about Newell’s Commercial business. Below are quotes from Newell 1Q 2020 earnings conference call:


“Rubbermaid Commercial Products also saw an improved top line trajectory in the first quarter with strong demand for washroom and commercial hand sanitizer products as well as cleaning and maintenance equipment.”


“Our Commercial business is also poised to have a strong second half. We have a strong order book, and we believe we'll be able to fulfill these orders in Q3 and Q4 as supply constraints ease.”


“The Commercial business was also a beneficiary from increased consumption of sanitizing and cleaning supplies.”


“And then Commercial in the first quarter was clearly a big winner. There, I think where the trends, the order book is very full. But there were, especially on things like sanitizer and stuff, there's certain supply constraints on how much we can meet them. But as we are expanding capacity, we think that over time we'll be able to fulfill that.”


The transcript of the conference call can be read here: https://finance.yahoo.com/news/edited-transcript-nwl-earnings-conference-055520536.html

Or can be listened to here: https://ir.newellbrands.com/events-and-presentations


RGT revenue is mostly from the United States, followed by Europe. By coincidence, these regions also have the most Covid-19 cases in the world.


As shops and offices open up for business, the demand for sanitiser dispensers and hand soap dispensers have shot up.


Government offices, commercial outlets and industries all around the world have been instructed to ensure availability of such sanitizers.


The new normal of being more hygienic…


The dispensers that RGT manufactures for Rubbermaid Commercial Products:




Join my Telegram channel for updates @worthystocks 

https://t.me/worthystocks


#RGTBHD

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