Spritzr- bottom-line crept higher

Results Update

For QE30/11/2012, Spritzr's net profit increased by 63% q-o-q or 54% y-o-y to RM5.1 million while revenue was mixed- dropped 2% q-o-q but rose 4% y-o-y to RM47 million. Despite 2%-drop in revenue, bottom-line improved due to the reduction in packaging material prices as well as selling and distribution expenses.


Table: Spritzr's last 8 quarterly results


Chart 1: Spritzr's last 26 quarterly results

Valuation

Spritzr (closed at RM1.00 on last Thursday) is now trading at a PE of 9.3 times (based on last 4 quarters' EPS of 10.69 sen). For a stable consumer stock, Spritzr's valuation is deemed quite attractive.

Technical Outlook

Spritzr seems to have broken above its downtrend line at RM0.90 in December 2012. With this breakout, the stock could continue with its prior uptrend and retest its previous high at RM1.20-1.30.


Chart 2: Spritzr's monthly chart as at Jan 31, 2013 (Source: Tradesignum)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Spritzr is a good stock for ling-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.