Riverstone (AP4) Q2 2025 earnings summary

Executive summary

• Manufactures high-tech cleanroom gloves, premium healthcare gloves, and cleanroom consumables for electronics, semiconductor, pharmaceutical, and healthcare sectors.

• Operates diversified business segments with a global presence in Malaysia, China, Thailand, and the Philippines.

• Net profit for 1HFY25 was RM101.8 million, a 29.6% decrease year-over-year, with revenue broadly flat at RM497.1 million, supported by higher generic healthcare glove sales but offset by lower cleanroom volumes and forex losses.

• Focuses on in-house technology, R&D, flexible production, and ESG initiatives, including solar expansion and resource savings.

• Cash and cash equivalents decreased to RM602.3 million as at 30 June 2025, mainly due to dividend payments and capital expenditure.

Financial highlights

• 1HFY25 revenue was RM497.1 million, up 0.1% year-over-year; 2QFY25 revenue was RM244.8 million, down 3.0% sequentially.

• Gross profit for 1HFY25 was RM147.9 million, down 24.8% year-over-year; gross margin for 2QFY25 was 26.8%, down from 40.2% a year ago.

• Net profit for 1HFY25 was RM101.8 million, down 29.6% year-over-year; 2QFY25 net profit was RM45.4 million, down 37.4% year-over-year.

• Operating cash flow for 1HFY25 was RM150.6 million; net cash used in investing: RM26.9 million; net cash used in financing: RM222.6 million, mainly for dividends.

• Interim dividend of 2.5 sen per share declared for 2QFY25; cumulative payout ratio for 1HFY25 was 80.1%.

Outlook and guidance

• Expects stronger cleanroom glove segment contributions in 2HFY25, driven by demand from data centres and AI-related industries.

• Continues to invest in R&D and flexible production to adapt to market changes and customer needs.

• Committed to ESG improvements, including water and electricity savings, waste reduction, and emission controls.

• Faces ongoing challenges from competition, excess capacity in medical gloves, rising costs, price competition, currency fluctuations, and potential US tariffs.

• Raw material prices have eased and are expected to remain stable in the near term.