Date: October 22, 2024
Broker: CGS International Securities

Overview of Riverstone Holdings

Riverstone Holdings is a Malaysian company specializing in the production of cleanroom and healthcare gloves. The company serves global markets, focusing on high-quality protective solutions.

Financial Outlook for 2H24F

• Challenges: The company is expected to face headwinds due to the strengthening of the Malaysian Ringgit (RM). This currency fluctuation poses a challenge for its export-oriented business, potentially impacting profitability.

Key Factors Affecting Performance

1. Currency Impact:

   • The strengthening RM makes Riverstone’s products more expensive in foreign markets, which could lead to a decline in demand and pressure on profit margins.
   • The company’s revenue, largely derived from exports, is particularly sensitive to changes in currency exchange rates.

2. Market Position:

   • Despite the currency challenges, Riverstone continues to hold a strong position in the cleanroom and healthcare glove segments.
   • The demand for high-quality protective gloves remains steady, particularly in sectors that prioritize hygiene and safety.

Analyst Notes

The report highlights that Riverstone’s profitability may come under pressure due to adverse currency movements. However, the company’s established market presence and product quality could help mitigate some of these impacts. Investors are advised to monitor the currency trends closely, as they play a significant role in the company’s financial health.