- Riverstone (SGX:AP4) reported 3Q25 revenue of RM248m (+1% q-o-q) and earnings of RM52m (+15% q-o-q), bringing 9M25 to form 72% of our full-year estimates, in line with our expectations. Increased volumes of cleanroom gloves to data centre and AI-related industries and customised healthcare gloves offset the impact of softer healthcare glove ASPs amid intense competition.
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Margins rebounded on better mix and cost tailwinds.
- Gross margin recovered to 30.9% (+4.1ppt q-o-q) as both cleanroom (+1.4ppt q-o-q) and healthcare (+4.7ppt q-o-q) margins improved. Lower nitrile prices (-5% q-o-q) and a better product mix offset the forex headwinds.
Strong balance sheet supports dividends.
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- A third interim Riverstone's dividends of 2.5 sen/share (3Q24: 4.0 sen/share) was declared, translating into a 77% payout.
- Despite lower y-o-y earnings, its debt-free balance sheet and robust cash holdings underpin consistent dividends. We expect an attractive 7.4% dividend yield for 2025.
AI and semiconductor demand drives cleanroom momentum into 2026.
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