Riverstone Holdings, a Singapore-based rubber glove manufacturer, has reported a disappointing first half of 2025, with net profit falling short of expectations at 43% of its full-year forecast, according to a CGS International report. However, the company anticipates a stronger performance in the second half, driven by increased demand in its cleanroom segment, which caters to data centres and AI-related industries.
The company’s revenue for the first half of 2025 was RM497.1 million, flat compared to the previous year, with a decline in cleanroom volumes and foreign exchange losses impacting results. Gross profit also fell by 24.8% year-on-year due to the depreciation of the US dollar against the Malaysian ringgit, higher volumes of lower-margin healthcare gloves, and increased depreciation costs.
Despite these challenges, Riverstone’s management remains optimistic about the second half of the year. The company plans to focus on higher-margin cleanroom gloves and customised healthcare gloves to drive growth. “Market conditions are improving heading into the second half,” the management stated, highlighting stable demand for healthcare gloves and a stronger contribution from the cleanroom segment.
CGS International has upgraded its outlook for Riverstone to “Add” from “Hold,” citing a potential recovery in net profit for the fiscal years 2026 and 2027. CGS International has also adjusted its valuation to reflect a 15.6 times FY27 earnings per share forecast, acknowledging its earnings exposure to higher-margin products and effective cash management during the COVID-19 pandemic.
Looking ahead, Riverstone aims to maintain its competitive edge by prioritising ESG (Environmental, Social, and Governance) compliance, having been recognised for its commitment to worker rights and sustainability. The company is also focused on reducing energy and water intensity by 2025, setting a benchmark for its peers in the industry.
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