Riverstone’s revenue for 4Q24 rose by 21.0% y-o-y but fell by 6.8% q-o-q, reaching MYR278.0m. On a full year basis, FY24 revenue grew 17.3% y-o-y to MYR1,072.8m.
Management attributed the y-o-y growth to both the cleanroom and healthcare segments.
Competition for healthcare gloves intensified outside of the US, but management remains focused on creating value through its cleanroom segment.
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In 4Q24, the cleanroom segment reported a gross profit margin of ~53.5%, while the healthcare segment's margin was around 17-18%.
Gross profit margins for 4Q24 compressed y-o-y, declining from 39.6% to 32.3% due to a weaker US$/MYR exchange rate.
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Management attributed this decline primarily to weaker US$-to-MYR exchange rates. Regarding their hedging policy, Riverstone hedges approximately 50% of monthly sales and does not engage in long-term foreign exchange (FX) hedging.
Overall, FY24 net profit came in-line with expectations, growing 30.2% y-o-y to MYR286.9m, accounting for 99.9% for our FY24 forecast.
3 consecutive years of special dividend payout.
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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