Public Announcement: This will be the last article covering Riverstone Holdings Limited (“RS”) till further notice. The reason is due to its relatively small market capitalization, which may in turn lead to speculation and manipulation. This can be reflected by the recent significant increase in share price which provides investors with notable capital gains, while the dividend payout continues to decrease. Given the above, the profile of RS is more suited for investors looking for opportunities to capitalize on its volatility.
On 7 August 2025, Riverstone Holdings Limited (“RS”) announced their half year result for FY2025. There is a slowdown in the financial performance of RS during this period, which saw a stagnant revenue growth and decreases in earnings as costs increases. While management has disclosed that there is a high barrier to entry for cleanroom gloves, they have also mentioned that there is an increase in competition from newcomers, noting that there is an excess capacity in the medical glove industry. This will likely continue to affect RS over the next few quarters.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::Second Quarter And/Or Half Yearly Results
Website: General Announcement::Corporate Presentation 1H2025
Financial Highlights
Revenue
| Metrics | Current | Previous |
|---|---|---|
| Revenue | +0.1% | +1.1% |
| Rating | Neutral | Favorable |
Revenue for the first half of FY2025 remain relatively unchanged at MYR497 million compared to the same period in the previous financial year. Management has disclosed that there are multiple challenges for RS, which includes competition from newcomers and Chinese manufacturers, as well as macroeconomic headwinds such as price competition, inflation, and rising costs. The revenue metric shifted towards Neutral.
Earnings Per Share
| Metrics | Current | Previous |
|---|---|---|
| Earnings per share | -29.6% | -21.8% |
| Rating | Unfavorable | Unfavorable |
Earnings per share for the first half of FY2025 has decreased by 29.6% to MYR0.0687 per share as compared to MYR0.0976 per share for the same period in the previous financial year. The decrease is mainly contributed by the decrease in gross profit, where management has disclosed that currently the business is experiencing increase in gas, utility and labor costs. The metric has shifted towards Unfavorable.
Operating Cash Flows
| Metrics | Current | Previous |
|---|---|---|
| Operating Cash Flows | +7.7% | +19.8% |
| Rating | Favorable | Favorable |
Cash flow generated from operations for the first half of FY2025 amounted to MYR151 million, an increase by 7.7% compared to MYR140 million for the same period in the previous financial year. The increase was mainly due to improvements in collection of receivables and a reduction in purchase of inventories. The metrics remain Favorable.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing ratio | 10.7% | 9.7% |
| Rating | Favorable | Favorable |
Gearing ratio as of 30 June 2025 has increased to 10.7%. This metric is computed using total assets of MYR1,631 million and total liabilities of MYR175 million. The metrics remains Favorable.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest coverage | 10,089.4x | 10,471.9x |
| Rating | Favorable | Favorable |
The interest coverage as of 30 June 2025 has decreased to 10,089.4 times, using profit before interest and tax of MYR131 million and finance costs of MYR0.013 million. The significantly high interest coverage is due to the Group has no external borrowings, with finance costs arising due to their lease liabilities. The metric remains Favorable.
Price-to-Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 2.64 | 1.97 |
| Rating | Unfavorable | Unfavorable |
The Net Asset Value (“NAV”) per share of the Group as of 30 June 2025 stands at MYR0.98 per share. This amounts to SGD0.298 per share when translated at the closing exchange rate of SGD1:MYR3.29 as of 16 September 2025. With a closing share price of SGD0.785 as of 16 September 2025, the Price-to-book (“P/B”) ratio for RS became more expensive at 2.64. This is Unfavorable as you will be paying a significant premium to its book value.
Website: Yahoo Finance SGD to MYR
Worth noting that RS has cash and cash equivalents of MYR602 million and no borrowings. At total ordinary shares of 1,484 million this represents net cash of SGD0.12 per share.
As of 16 September 2025, the Market Capitalization is approximately SGD1,164 million.
Website: Yahoo Finance: Riverstone Holdings Limited (AP4.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 6.77% | MYR 0.175 |
| 2024 | 9.48% | MYR 0.245 |
| 2023 | 10.84% | MYR 0.280 |
| 2022 | 20.90% | MYR 0.540 |
| 2021 | 11.61% | MYR 0.300 |
| 2020 | 3.81% | MYR 0.099 |
With the dividend payout in October 2025 amounting to MYR0.025 per share, this is lower than the amount paid compared to the previous calendar year. The payout for RS in December 2025 is likely to be similar at MYR0.025 per share, and the expected dividend payout for the calendar year 2025 will be approximately MYR0.200 per share.
With a closing share price of SGD0.785 and closing exchange rate of SGD1:MYR3.29 as of 16 September 2025, this translates to a dividend yield of 7.74%. For my benchmark, a general reasonable yield would be around 4.75%. The dividend yield is thus Favorable.
Website: Reasonable Dividend Yield 2025Q3 – 4.75%
Do note that their dividend has been on a downtrend though it is still at a relative high yield. A more conservative estimate may be to assume that RS pays a dividend of MYR0.025 per quarter. When annualized, this amounts to MYR0.100 which translates to SGD0.030 per share and a dividend yield of 3.87%.
If using dividend yield of 4.75% as a benchmark, based on the lowered dividend of MYR0.100 per share there is potential for RS to see its share price drop by another 18.5% to SGD0.640.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 0.785 | – |
| 4.75% | 0.640 | -18.5% |
| 5.75% | 0.530 | -32.7% |
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Revenue | +0.1% | Neutral |
| Earnings per share | -29.6% | Unfavorable |
| Operating Cash Flows | +7.7% | Favorable |
| Gearing ratio | 10.7% | Favorable |
| Interest coverage | 10,089.4x | Favorable |
| Price to Book Ratio | 2.64 | Unfavorable |
| Overall | Neutral |
Overall, the metric remains Neutral to invest in RS. Similar to other companies in the general market, RS is facing challenges with competition and increases in costs. This is likely to continue to impact RS financial performance over the next few quarters, while management has disclosed that RS has several competitive advantages which places RS in a good position to capitalize on opportunities.
Background
Riverstone Resources is established in year 1989 and still growing in their industry. With a history spanning close to 30 years, Riverstone has accumulated a huge network of stakeholders and expertise in their making. Being one of the leading manufacturers of cleanroom and medical industry, they manufacture top of the line healthcare gloves, nitrile gloves, finger cots, face masks, packaging bags etc.
Their products are widely qualified and used in the Hard Disk Drive (HDD), semiconductor and healthcare industries in Malaysia. On top of the achievements, Riverstone exports their products to key high technology countries around Asia, Europe and the American region.
Riverstone has been growing extensively, for the amazing recognition for their products around the world. To cope with growing demands, they have increased their capacity by setting up a new manufacturing plant in Thailand in year 2001, and another one in Wu Xi China in year 2004. Later in year 2010, they built a new plant in Taiping, equipped with only state of the art manufacturing facility to keep their promises for premium quality.
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