Riverstone - UOB Kay Hian 2022-12-06: 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.

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

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