Riverstone - UOB Kay Hian 2025-05-09: Facing Near-term Headwinds; Downgrade To HOLD.

• Riverstone’s 1Q25 earnings of RM56m (-22% y-o-y, -19% q-o-q) missed expectations, impacted by higher raw material costs and unfavourable forex fluctuations.
• While volume growth remained strong, healthcare ASPs declined by 5-8% q-o-q. Operational ramp-up has been delayed to Jul 25 due to gas supply constraints. Given these headwinds, we downgrade Riverstone to HOLD with a 29% lower target price.

Lacklustre 1Q25 performance.

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Lower interim dividend declared.

• Riverstone's interim dividend for 1Q25 dropped 25% y-o-y to 3.0 sen (1Q24: 4.0 sen), implying a 78.7% payout (1Q24: 82.1%) or 4% annualised yield.

Yoy volume growth remains strong...

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Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Previous report by UOB:
2024-11-13 Riverstone - 3Q24 Results In Line; Healthy Outlook Ahead With Capacity Expansion.

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 Dividend Payout Dates & Corporate Actions,
Riverstone News