Riverstone (AP4) H1 2024 earnings summary

Executive summary

• Net profit rose 54.6% year-over-year to RM144.7 million for 1H FY2024, driven by a stronger mix of high-end products and demand recovery in healthcare and cleanroom gloves.

• Revenue increased 7.4% year-over-year to RM496.4 million for 1H FY2024, with gross profit margin improving by 12.2 percentage points to 39.6%.

• Riverstone specializes in high-tech cleanroom gloves, premium healthcare gloves, and consumables, serving electronics, semiconductor, and healthcare sectors.

• The group operates manufacturing sites in Malaysia, China, and Thailand, with a diversified revenue base from cleanroom and healthcare businesses.

• Extensive R&D, flexible production, and a strong ESG focus differentiate Riverstone from peers.

Financial highlights

• 2Q FY2024 revenue was RM246.9 million, up 10.1% year-over-year; gross profit margin improved to 40.2%.

• Net profit for 2Q FY2024 was RM72.5 million, up 54.7% year-over-year; diluted EPS at 4.89 sen.

• Operating cash flow for 1H FY2024 was RM139.9 million, with consistent positive generation since 2006.

• Cash and cash equivalents stood at RM761.2 million as of 30 June 2024, down from RM875.4 million at end-2023.

• Dividend payout has been consistent, with a payout ratio of 49.3%–82.0% in 1H2024.

Outlook and guidance

• Anticipates continued strong demand for cleanroom gloves, supported by global semiconductor industry capacity expansion forecasts of 6% in 2024 and 7% in 2025.

• New production lines expected to be commissioned by end-2024 to meet growing customer demand.

• Management highlights ongoing R&D, flexible production, and ESG initiatives as key drivers for future growth.

• Focus on cost management and product streamlining to address industry overcapacity and rising costs.