Riverstone - Bumper Dividends
- Due to lower ASPs, Riverstone (SGX:AP4)’s 4Q21 net profit contracted to RM110.8m (-58% q-o-q, -67% y-o-y), bringing FY21 net profit to RM1.42bn (+119% y-o-y). FY21 results were in line with our expectations. Riverstone's Back-loaded dividend payout of RM0.38/share (final + special dividend) represents ~15% yield.
- Strong demand for cleanroom gloves supports elevated ASPs. Structural shift in product mix means cleanroom could contribute 76% of FY22F gross profit.
- Reiterate ADD call on Riverstone with lower target price of S$1.10. We lower our FY21-23F EPS forecast by 6.2-13.7% on lower healthcare ASP assumptions.
- We believe Riverstone’s earnings are relatively resilient vs Malaysian-listed peers in the current environment given sustained performance in the cleanroom segment.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-23 2022-02-23
Previous report by CGS-CIMB:
2021-11-10 Riverstone Holdings - Valuations Attractive At Current Levels
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