Riverstone Holdings

[winston]

not vested

3Q Results

Revenue: -59% yoy
EPS: -76% yoy
Cash RM 1.26b
Number of Shares: 1.482 b
Cash / Share: RM 0.85

https://links.sgx.com/FileOpen/Riversto ... eID=738078

[winston]

not vested

Riverstone Holdings (RSTON SP)
3Q22: Underperformance As Headwinds Persist; Ceasing Coverage

For 3Q22, net profit was below expectations, dragged by falling ASPs and moderating
demand for healthcare gloves.

The healthcare glove segment faces ongoing headwinds due to an unfavourable demand-supply imbalance.

Cleanroom gloves remained resilient in 3Q22 with ASPs holding steady, although demand is expected to soften slightly in 4Q22 due to the ongoing zero-COVID policy in China.

With no immediate catalysts, we will be ceasing coverage on Riverstone. The last call is HOLD. Target price: $0.67.

Source: UOBKH

https://research.uobkayhian.com/content ... 579d6a4167

[behappyalways]

Riverstone Holdings reports FY2022 earnings of RM314.4 mil, 77.8% lower y-o-y due to the normalisation of ASPs
https://www.theedgesingapore.com/capita ... -y-o-y-due

[winston]

not vested

Another round of bumper dividends

4Q22 net profit of RM42m (-62% yoy) was in line with expectations.

Final + special dividend of 18 sen/share brought full-year dividend yield to 16%.

Challenges in healthcare gloves remain; RSTON looks to focus on specialty/ customised gloves and lower-end cleanroom gloves to drive growth.

Reiterate Hold with a lower TP of S$0.60 as the competitive environment for the glove industry is unlikely to improve in the near term.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... D7C1EEC676

[winston]

not vested

Riverstone Holdings announces earnings of RM46.7 mil, down 57% y-o-y

by Bryan Wu

Riverstone Holdings AP4 -0.85% has announced earnings of RM46.7 million ($13.94 million) for 1QFY2023, a 57% y-o-y decline in net profit from RM108.7 million for the corresponding period in FY2022.

For the period ended March 31, the company recorded revenue of RM238.0 million, a 40.8% y-o-y decrease from RM402.3 million in 1QFY2022 million due to lower average selling prices.

Riverstone’s gross profit margin contracted from 38.4% to 26.0% over the same period.

As at March 31, the company held RM990.5 million in cash and cash equivalents.

Source: The Edge

https://www.theedgesingapore.com/capita ... n-57-y-o-y

[behappyalways]

For my own reference....

Earnings seem to have stabilised. Full year should be around 4-5 cents. Share price is 59 cents. More than 10 PE. One thing I feel is that the depreciation is a bit low hence actual earnings might be lower

[winston]

not vested

Riverstone 3QFY2023 net profit up 26.5% q-o-q, revenue flat q-o-q but down 17.5% y-o-y

by Jovi Ho

Riverstone says demand from the consumer electronics industry continued to be slow due to the sector downturn. However, new clients onboarded for customised healthcare gloves negated the impact.

Source: The Edge

https://www.theedgesingapore.com/capita ... -175-y-o-y

[winston]

not vested

Emerging stronger

3Q23 net profit of RM59m (+26% qoq) was a beat as GPM rose 6% pts qoq as its focus on customised gloves pays off with higher prices and margins.

RSTON has observed slight demand improvement in the cleanroom segment since 4Q23F and is upbeat on further recovery in FY24F.

Upgrade to Add with a TP of S$0.75 as we like RSTON’s nimble execution and expect it to emerge stronger from the industry downcycle vs. peers.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 990F0B5420

[winston]

not vested

Returning to profit growth in FY24F

We think 4Q23F marks a fundamental inflection point for RSTON, with its net profit returning to yoy growth (+5% qoq, +48% yoy) on demand recovery.

We expect cleanroom demand to further improve in FY24F, while RSTON’s focus on customised gloves helps expand its healthcare segment margins.

Reiterate Add with a higher TP of S$0.88. We see likelihood of a special dividend being declared alongside its FY23F results announcement in Feb.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... CF5F406185

[winston]

not vested

Riverstone Holdings (RSTON SP)
Semiconductor Industry Recovery Will Benefit Cleanroom Glove Segment

Riverstone’s cleanroom gloves, which contribute about 80% of earnings, are expected to see a recovery in demand, driven by new clients onboarded in the preceding year and improvement in the semiconductor industry in 2024.

On the healthcare gloves front, sustained product customisation efforts with new production lines are yielding results, as seen from increased demand for higher-margin customised healthcare gloves.

We upgrade Riverstone to BUY with a 22% higher target price of S$0.82.

Source: UOBKH

https://research.uobkayhian.com/content ... 280d40f95d