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Wednesday, December 19, 2012

Spritzr broke above its downtrend line

Results Update

For QE31/8/2012, Spritzr's net profit rose 56% q-o-q or 102% y-o-y to RM3.15 million while revenue increased by 2% q-o-q or 16% y-o-y to RM48 million. The increased revenue on y-o-y basis was attributable to higher sales volume (due to sales promotion) and higher selling prices. The increased bottom-line was due to higher sales volume and sales of higher margin products.


Table: Spritzr's last 8 quarterly results


Chart 1: Spritzr's last 25 quarterly results

Valuation

Spritzr (at RM1.03 as at 11.00am) is trading at a PE of 11 times (based on last 4 quarters' EPS of 9.31
 sen). At this PE, Spritzr is deemed fairly valued for a smallcap stock, albeit one that has potential for further growth due to recent plant expansion.

Technical Outlook

Spritzr broke above its downtrend line at RM0.90 a few days ago. With this breakout, Spritzr can continue with its long-term uptrend. Next target is the recent high at RM1.20.


Chart 2: Spritzrs weekly chart as at Dec 18, 2012 (Source: Tradesignum)

Conclusion

Based on good financial performance and positive technical outlook, Spritzr could be a good stock for long-term investment.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Spritzr.

1 comment:

Mat Cendana said...

I remember someone here asking you about Spritzer at an unrelated post some months ago. I've been following its price casually since then. Volume was extremely low and anyone who had invested would also need to be very patient. It's no fun seeing your counter in a semi-coma when others go up and up.

But now Spritzer has finally started to move. Anyone who had bought it then would have made satisfactory profits. This type of counter is very suitable for those who want to invest but don't want to put up with the stress of volatility.