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Friday, January 29, 2016

Spritzr: Earnings rose marginally q-o-q

Result Update

For QE30/11/2015, Spritzr's net profit increased marginally by 1.5% q-o-q & 114% y-o-y to RM7.4 million. Revenue was mixed- dropped 1.6% q-o-q but rose 13% y-o-y to RM66 million. Revenue increased y-o-y due to increased sales volume of bottled water products & packaging material as well as better selling prices. This plus reduction in the cost of packaging material costs led to a y-o-y jump in profits.


Table: Spritzr's last 8 quarterly results


Chart 1: Spritzr's last 38 quarterly results

Valuation

Spritzr (closed at RM2.33 yesterday) is now trading at a PE of 12 times (based on last 4 quarters' EPS of 19.38 sen). At this PER, Spritzr is still deemed attractive for a consumer stock.

Technical Outlook

Spritzr is in a long-term uptrend line, with support at RM2.00. Its immediate resistance at the horizontal line at RM2.40.


Chart 2: Spritzr's monthly chart as at Jan 28, 2015-6  (Source: ShareInvestor.com)

The medium-term chart shows immediate support at RM2.15.


Chart 3: Spritzr's daily chart as at Jan 28, 2015-6  (Source: ShareInvestor.com)

Conclusion

Based on satisfactory financial performance, attractive valuation and mildly positive technical outlook, Spritzr remains 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.

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