Riverstone’s net profit inched up 5.2% in Q3

Revenue also climbed 9.2%.

Mainboard-listed Riverstone Holdings reported a 5.2% year-on-year increase in its net profit for the third quarter. Riverstone’s net profit climbed to $6.38m (MYR 16.5m) last quarter from $6.07m (MYR 15.7m) in the same period last year.

Revenue also rose 9.2% year-on-year to $39.72m (MYR 102.7m), boosted by increased cleanroom and healthcare gloves demand.

According to OSK DMG, Riverstone’s production ramp up for its new Taiping plant is currently on track, with full capacity of 4.2bn gloves by 4Q14. These ought to contribute positively to its 4Q14 and FY15 earnings.

“ We remain bullish on management’s ability to continue delivering strong and steady growth, especially in FY15. This is with full production capacity at 4.2bn, a 1bn increase from FY14, which should directly translate into positive earnings. For 4Q14, we expect net profit to outperform and make up the remaining 28% of our FY14 NPAT estimate of MYR67.8m. Phase 2 of Riverstone’s expansion, which may cost up to MYR50m and add another 1bn to its capacity, has already begun with full production slated to commence by end-FY15,” noted OSK DMG.