Highlights from Riverstone Holdings Limited’s First Quarter Results

riverstoneRiverstone Holdings (SGX: AP4), a leading manufacturer of specialised cleanroom and healthcare gloves based in Malaysia, released its first quarter results on Tuesday.

Revenue climbed 8.7% year-on-year to RM87.8 million as demand for its cleanroom and healthcare gloves continued to grow. Gross profit margin was at 30.6%, an improvement from 25.7% seen last year, due to favourable raw material prices. Net profit surged 35.2% to RM16 million as a result.

As of 31st March 2014, the firm had a strong cash position of RM108.9 million. Even though it was a slight dip from RM114 million seen at the end of 2013, it is still commendable. Another remarkable thing to note is that it had produced the outstanding results, as seen above, without any bank borrowings.

Executive Chairman and Chief Executive Officer, Mr Wong Teek Son, commented, “While we seek to maintain our leadership position in the high-end cleanroom gloves segment, we are also gradually growing our market share within the new cleanroom glove and healthcare glove segments. In order to benefit from the growing global market demand for healthcare gloves, we are pleased to share that we are on track with developments for the first phase of expansion plans in Taiping, Malaysia. The new factory built on a 30-acre land, is expected to roll out operations from July 2014, increasing our total annual production capacity from 3.1 to 4.2 billion pieces of gloves by 31 December 2014.”

The company’s shares closed at S$0.855 on Tuesday, valuing it at 14 times its historical earnings. The dividend yield stands at 3%.