Excerpts from UOBKayHian report

Riverstone Holdings (SGX: AP4)

For 1H22, Riverstone Holdings (Riverstone) PATMI was in line with expectations, dragged down by falling ASPs and moderating demand for healthcare gloves. The healthcare gloves segment faces ongoing headwinds as additional supply starts to come on stream. Cleanroom gloves remained resilient in 2Q22 with ASPs holding steady, although demand is expected to soften slightly in 3Q22 due to ongoing sporadic China lockdowns. With no immediate catalysts, maintain HOLD on Riverstone with a lower target price of S$0.67.

Riverstone Holding 1H22 ASPs and demand normalised

The company reported sharp declines in both 2Q22 revenue (-62.6% yoy, -12.5% qoq) and PATMI (-79.9% yoy, -7.8% qoq) as ASPs and demand for healthcare gloves continued their downtrend. 1H22 revenue and PATMI formed 41.4% and 49.7% of our full-year forecasts, largely in line with expectations. The slight underperformance for revenue is due to lower-than-expected healthcare...