Latest news with #RiverstoneHoldings
Business Times
6 days ago
- Business
- Business Times
Riverstone Q2 earnings fall 37.4% to RM45.4 million
[SINGAPORE] Gloves maker Riverstone Holdings posted a 37.4 per cent year on year drop in net profit to RM45.4 million (S$13.8 million) for the quarter ended June from RM72.5 million as higher cost of sales eroded margin. In a regulatory filing published on Thursday (Aug 7), the Malaysia-based, Singapore-listed manufacturer of cleanroom and healthcare globes posted a marginal decrease of 0.8 per cent in revenue to RM244.8 million. Cost of sales surged 21.3 per cent in the second quarter of FY2025. Hence, earnings per share of 3.06 sen for the period was lower than 4.89 sen for the year-ago period. Riverstone Holdings half-year earnings slid 29.6 per cent to RM101.8 million from RM144.7 million, even though revenue inched up 0.1 per cent to RM497.1 million from RM496.4 million. Margin reduction was due to a depreciated greenback against the Malaysian currency (that resulted in foreign exchange translation losses), the product mix shift towards generic healthcare gloves (that have lower margin) as well as full depreciation costs from new capacity that remained idle due to domestic gas supply disruptions. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Riverstone Holdings is recommending an interim dividend of 2.5 sen per share for the quarter, down from 4 sen for the year-ago period. It was a cumulative dividend payout of 80 per cent for the half year. Net asset value per share was RM0.98 as at end-June, lower than RM1.06 as at end-December 2024. Chief executive Wong Teek Son said that in spite of intensifying competition, demand for generic healthcare gloves is stable, and this volume-driven segment is expected to help offset higher depreciation costs associated with the commissioning of new production facilities. Cleanroom glove contribution is expected to rise in the second half of the year, underpinned by rising demand from artificial intelligence industries and data centres, he added. Riverstone Holdings shares were up 2.1 per cent or S$0.015 at S$0.725 on Thursday, before the financial results were published.
Yahoo
19-05-2025
- Business
- Yahoo
Here's Why We're Wary Of Buying Riverstone Holdings' (SGX:AP4) For Its Upcoming Dividend
Readers hoping to buy Riverstone Holdings Limited (SGX:AP4) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Thus, you can purchase Riverstone Holdings' shares before the 23rd of May in order to receive the dividend, which the company will pay on the 6th of June. The company's next dividend payment will be RM00.03 per share, and in the last 12 months, the company paid a total of RM0.24 per share. Looking at the last 12 months of distributions, Riverstone Holdings has a trailing yield of approximately 10.0% on its current stock price of S$0.725. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Riverstone Holdings has been able to grow its dividends, or if the dividend might be cut. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Last year, Riverstone Holdings paid out 104% of its income as dividends, which is above a level that we're comfortable with, especially if the company needs to reinvest in its business. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Riverstone Holdings paid out more free cash flow than it generated - 128%, to be precise - last year, which we think is concerningly high. It's hard to consistently pay out more cash than you generate without either borrowing or using company cash, so we'd wonder how the company justifies this payout level. Riverstone Holdings does have a large net cash position on the balance sheet, which could fund large dividends for a time, if the company so chose. Still, smart investors know that it is better to assess dividends relative to the cash and profit generated by the business. Paying dividends out of cash on the balance sheet is not long-term sustainable. Cash is slightly more important than profit from a dividend perspective, but given Riverstone Holdings's payouts were not well covered by either earnings or cash flow, we would be concerned about the sustainability of this dividend. View our latest analysis for Riverstone Holdings Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see Riverstone Holdings's earnings per share have risen 16% per annum over the last five years. We're a bit put out by the fact that Riverstone Holdings paid out virtually all of its earnings and cashflow as dividends over the last year. Earnings are growing at a decent clip, so this payout ratio may prove sustainable, but it's not great to see. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Riverstone Holdings has lifted its dividend by approximately 30% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see. Has Riverstone Holdings got what it takes to maintain its dividend payments? Earnings per share have been growing, despite the company paying out a concerningly high percentage of its earnings and cashflow. We struggle to see how a company paying out so much of its earnings and cash flow will be able to sustain its dividend in a downturn, or reinvest enough into its business to continue growing earnings without borrowing heavily. Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor. So if you're still interested in Riverstone Holdings despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. In terms of investment risks, we've identified 1 warning sign with Riverstone Holdings and understanding them should be part of your investment process. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Bearish: Analysts Just Cut Their Riverstone Holdings Limited (SGX:AP4) Revenue and EPS estimates
The analysts covering Riverstone Holdings Limited (SGX:AP4) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. After the downgrade, the four analysts covering Riverstone Holdings are now predicting revenues of RM1.2b in 2025. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 2.2% to RM0.19. Prior to this update, the analysts had been forecasting revenues of RM1.4b and earnings per share (EPS) of RM0.23 in 2025. Indeed, we can see that the analysts are a lot more bearish about Riverstone Holdings' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot. Check out our latest analysis for Riverstone Holdings The consensus price target fell 21% to S$0.93, with the weaker earnings outlook clearly leading analyst valuation estimates. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Riverstone Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So while Riverstone Holdings' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry. The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business. Not only have the analysts been downgrading the stock, but it looks like Riverstone Holdings might find it hard to maintain its dividends, if these forecasts prove accurate. You can learn more, and discover the 1 possible risk we've identified, for free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Bearish: Analysts Just Cut Their Riverstone Holdings Limited (SGX:AP4) Revenue and EPS estimates
The analysts covering Riverstone Holdings Limited (SGX:AP4) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. After the downgrade, the four analysts covering Riverstone Holdings are now predicting revenues of RM1.2b in 2025. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 2.2% to RM0.19. Prior to this update, the analysts had been forecasting revenues of RM1.4b and earnings per share (EPS) of RM0.23 in 2025. Indeed, we can see that the analysts are a lot more bearish about Riverstone Holdings' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot. Check out our latest analysis for Riverstone Holdings The consensus price target fell 21% to S$0.93, with the weaker earnings outlook clearly leading analyst valuation estimates. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Riverstone Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So while Riverstone Holdings' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry. The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business. Not only have the analysts been downgrading the stock, but it looks like Riverstone Holdings might find it hard to maintain its dividends, if these forecasts prove accurate. You can learn more, and discover the 1 possible risk we've identified, for free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Bearish: Analysts Just Cut Their Riverstone Holdings Limited (SGX:AP4) Revenue and EPS estimates
The analysts covering Riverstone Holdings Limited (SGX:AP4) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. After the downgrade, the four analysts covering Riverstone Holdings are now predicting revenues of RM1.2b in 2025. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 2.2% to RM0.19. Prior to this update, the analysts had been forecasting revenues of RM1.4b and earnings per share (EPS) of RM0.23 in 2025. Indeed, we can see that the analysts are a lot more bearish about Riverstone Holdings' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot. Check out our latest analysis for Riverstone Holdings The consensus price target fell 21% to S$0.93, with the weaker earnings outlook clearly leading analyst valuation estimates. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Riverstone Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So while Riverstone Holdings' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry. The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business. Not only have the analysts been downgrading the stock, but it looks like Riverstone Holdings might find it hard to maintain its dividends, if these forecasts prove accurate. You can learn more, and discover the 1 possible risk we've identified, for free on our platform here. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
