During the 2QFY2024, Riverstone’s cleanroom gloves (CG) average selling price (ASP) stabilised q-o-q at US$90 per 1,000 pieces. On the other hand, its healthcare gloves (HG) ASP decreased to US$26 to US$27 per 1,000 pieces from US$29 the quarter before, due to the shift in product mix towards generic products.
The team of analysts at RHB Bank Singapore have kept their “buy” call on Riverstone Holdings (SGX:AP4
) at a lowered target price of $1.04 from $1.05 previously, as they trim their FY2024 to FY2026 earnings estimates by 2% each year due to the weakening US dollar (USD) against the Malaysian Ringgit (MYR).
They write in their Aug 8 report: “Our 2HFY2024 outlook for Riverstone remains positive, premised on the recovery of global semiconductor sales and improving market dynamics within the healthcare glove industry. We continue to like the company for its unique exposure in the cleanroom segment, above-industry margin profile and a consistent dividend payout.”
