- Riverstone’s cleanroom gloves, which contribute about 80% of earnings, are expected to see a recovery in demand, driven by new clients onboarded in the preceding year and improvement in the semiconductor industry in 2024.
- - Read this at SGinvestors.io -
- We upgrade Riverstone to BUY with a 22% higher target price of S$0.82.
Demand for cleanroom gloves likely to improve on semiconductor recovery.
- As Riverstone (SGX:AP4)'s customers are major manufacturers in the semiconductor and hard disk drive industries, the slowdown in the electronics and semiconductor sectors have led to softer cleanroom glove demand from 2022.
- - Read this at SGinvestors.io -
- While Riverstone's management has shared that ASPs will be lowered to pass on cost savings from raw materials, they have also announced successful client acquisitions from the pharmaceutical sector. The impact of lower ASPs will likely be offset by higher volumes from both Riverstone's semiconductor customers and new clients, pointing to top-line growth for the cleanroom glove segment in 2024.
Recent 3Q23 results signal potential turnaround in 2024.
- Read more at SGinvestors.io.
