- Riverstone (SGX:AP4)’s 4Q23 net profit of RM68m (+14% q-o-q, +61% y-o-y) was better than our previewed RM62m. Riverstone still has excess cash in its balance sheet to sustain dividend payout ratio of >100% for the next 3 years, in our view.
4Q23 a beat on stronger profit margin; 8.8% dividend yield for FY23
- - Read this at SGinvestors.io -
- lower raw material price, and
- weaker RM against US$.
- Riverstone's FY23 net profit of RM220m came in at 103% of both our and Bloomberg consensus forecasts.
- Riverstone declared a final dividend of 7.5sen and special dividend of 7.5sen, bringing Riverstone's dividends for FY23 to 22.5 sen per share (8.8% dividend yield).
Strategy to focus on customised gloves pays off
- - Read this at SGinvestors.io -
- Riverstone said there is currently limited competition in this niche market, and it has been able to capture this opportunity as its dipping lines were designed to cater to more flexible manufacturing originally intended for cleanroom glove production. Priority for this segment remains product mix optimisation instead of volume growth, given intense price competition for generic glove remains.
- Riverstone is currently reconfiguring one of its plants (previously decommissioned) to cater to the production of customised gloves and expects the new capacity to come onstream from 3Q24F onwards.
Cleanroom glove volumes set to recover in FY24F
- Read more at SGinvestors.io.
