Broker Name: CGS International
Date of Report: March 2, 2026

Excerpt from CGS International report.

Report Summary
• CGS International downgraded Riverstone Holdings to “Hold” due to forex headwinds, cutting FY26-27F EPS by 21-24% as the US dollar weakens against the ringgit. Target price lowered to S\$0.78.
• Despite weaker earnings growth, Riverstone maintains an attractive 5.6-6.6% dividend yield for FY26-28F with a 100% payout ratio, supported by strong cash reserves and disciplined capex plans.
• Cleanroom glove segment is expected to grow robustly in FY26-28F, driven by AI infrastructure demand and new customers, offsetting healthcare competition pressure and currency volatility.
• Riverstone stands out on ESG compliance, with no incidents of non-compliance and active engagement with third-party auditors, and has reduced energy and water intensity since 2020.
• Key risks include further margin compression from forex, intensified competition from Chinese suppliers, and weaker glove demand; upside risks include stronger-than-expected demand and special dividend distributions.
• Peer comparison shows Riverstone with higher dividend yields and strong ROE, but lower EPS growth relative to competitors.

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.cgs-cimb.com