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.

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

Read also UOB's most recent report:
2025-06-19 Riverstone - Key Takeaways From Malaysia NDR.

Previous report by UOB:
2025-05-09 Riverstone - Facing Near-term Headwinds; Downgrade To HOLD. .

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 Dividend Payout Dates & Corporate Actions,
Riverstone News