Riverstone - CGS-CIMB Research 2024-01-19: Special Dividend Likely; Returning To Profit Growth In FY24

Riverstone - Special Dividend Likely; Returning To Profit Growth In FY24

Published:
Riverstone (SGX:AP4) | SGinvestors.ioRiverstone (SGX:AP4)
  • We project Riverstone (SGX:AP4)’s FY23F net profit at RM215m, 65% above its pre-pandemic (FY19) level. We also see likelihood of a special dividend being declared as Riverstone seeks to return excess cash to shareholders (end-Sep 23: net cash of RM950m).
  • - Read this at SGinvestors.io -

4Q23F Earnings Preview: Improving profitability

  • We project Riverstone to record a net profit of RM62m for 4Q23F (+5% q-o-q, +48% y-o-y), helped by a recovery in glove demand at end-2023F.
  • We estimate Riverstone’s cleanroom segment volume grew 5% q-o-q in 4Q23F, while its healthcare segment gross profit margin improved to 19% in 4Q23F (3Q23: 16%) as Riverstone’s strategy to focus on customised glove paid off.

Cleanroom glove volumes to recover

  • - Read this at SGinvestors.io -
  • It is currently in talks with customers on a possible slight price reduction in return for price-locking. However, Riverstone is confident segment margins can be kept at ~50% as selling prices are still at a ~30% premium to pre-COVID levels.

Strategy to focus on customised gloves pays off

  • Read more at SGinvestors.io.




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 2024-01-19



Previous report by CGS-CIMB:
2023-11-06 Riverstone - Emerging Stronger; Upgrade To ADD.

Price targets by 2 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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