- 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 3 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
