Riverstone - UOB Kay Hian 2022-12-06: 3Q22 Underperformance As Headwinds Persist; Ceasing Coverage

Riverstone - 3Q22 Underperformance As Headwinds Persist; Ceasing Coverage

  • For 3Q22, Riverstone's 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.
    • - Read this at SGinvestors.io -
  • With no immediate catalysts, we will be ceasing coverage on Riverstone. The last call is HOLD. Target price: $0.67.

3Q22: ASPs and demand fall.

  • Riverstone (SGX:AP4) reported sharp declines in both 3Q22 revenue (-58.6% y-o-y, -23.3% q-o-q) and PATMI (-76.2% y-o-y, -36.6% q-o-q) as ASPs and demand for healthcare gloves continued their downtrend. 9M22 revenue and PATMI formed 71.6% and 68.8% of our full-year forecasts, below our expectations.
  • - Read this at SGinvestors.io -
  • To reward the group’s shareholders, Riverstone declared an additional second interim dividend of 6.0 sen, taking total 9M22 year-to-date dividends to 16.0 sen, implying a ~87% dividend payout ratio.

Healthcare gloves: Continued downtrend catalysed by stiff competition.

  • Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.

Llelleythan Tan UOB Kay Hian Research | John Cheong UOB Kay Hian | https://research.uobkayhian.com/ 2022-12-06

Read also UOB's most recent report:
2024-01-25 Riverstone - Semiconductor Industry Recovery Will Benefit Cleanroom Glove Segment.

Price targets by other brokers at Riverstone Target Prices.

Listing of research reports at Riverstone Analyst Reports.

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


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