Riverstone - CGS-CIMB Research 2022-02-23: Bumper Dividends

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
SGX Stock Analyst Report ADD MAINTAIN ADD 1.10 DOWN 1.200

Previous report by CGS-CIMB:
2021-11-10 Riverstone Holdings - Valuations Attractive At Current Levels

Check out the most recent target prices at Riverstone Target Prices. Listing of analyst research reports at Riverstone Analyst Report.

Relevant links:
Riverstone Share Price History,
Riverstone Announcements,
Riverstone Dividends & Corp Actions,
Riverstone News Articles


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