In the 3QFY2024, Riverstone announced a net profit of RM27 million ($8.08 million), 22% higher y-o-y and slightly above Ong’s preview expectations of RM69 million. Riverstone’s 9MFY2024 net profit formed 77% of CGSI’s and 74% of Bloomberg’s consensus estimates.
CGS International analyst Ong Khang Chuen has upgraded his call on Riverstone Holdings (SGX:AP4
) to “add” from “hold” previously following the company’s business update for the 3QFY2024 ended Sept 30. He has also lifted his target price estimate to $1.10 from 95 cents previously.
Ong’s upgrade comes amid “dissipating concerns” over foreign currency (forex) pressures after President-elect Donald Trump’s win, as well as better prospects in FY2025 from the trade diversion of medical gloves stemming from the increase in US import tariffs on Chinese gloves. The US government has announced a 50% import tariff on China-made medical gloves by January 2025, with aims to increase this to 100% in January 2026.
