Broker Name: CGS International
Date of Report: October 13, 2025
Excerpt from CGS International report.
Report Summary
- Riverstone Holdings is expected to report lower FY25F earnings due to a weaker US dollar versus the Malaysian ringgit, resulting in an 8.3% reduction in net profit forecast to RM219.8m.
- Despite this, the broker reiterates an “Add” rating as earnings are projected to recover with 16.2% and 12.3% year-on-year growth in FY26F and FY27F, supported by strong cleanroom glove demand and stable dividend yields (5.7-7.2%).
- The cleanroom segment, driven by electronics demand, remains the main profit driver, accounting for 40% of group revenue and 70% of gross profit in 2Q25.
- Riverstone is valued at a premium compared to its peers due to its higher margin cleanroom gloves and management’s dividend commitment.
- The company stands out on ESG factors, with no incidents of non-compliance and proactive engagement on worker welfare and environmental targets.
- Key risks include further US\$/RM weakness, intense competition in Asia and Europe from Chinese suppliers, and changes in product mix affecting margins.
- Peer comparisons show Riverstone trading at a lower P/E versus some competitors, with above-average returns and a strong balance sheet.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com.sg
