Result Update
For QE31/5/2013, Spritzr's net profit jumped 19% q-o-q or 195% y-o-y to RM5.9 million while revenue was mixed- down 12% q-o-q but rose 8% y-o-y to RM50 million. The company attributed "the increase in profit in the current quarter to sales of higher margin products as well as better selling prices for products sold for the 13th General Election. The improvement in operations efficiency and productivity also contributed to the better results recorded in the current quarter."
Table: Spritzr's last 8 quarterly results
Chart 1: Spritzr's last 28 quarterly results
Valuation
Spritzr (closed at RM1.82 yesterday) is now trading at a PE of 12.4 times (based on last 4 quarters' EPS of 14.69 sen). At this PE multiple, Spritzr is still deemed attractive.
Technical Outlook
Spritzr rallied after breaking above the strong horizontal line at RM1.15-1.20. The present rally has put the stock at an oversold position, setting the stage for a near-term correction.
Chart 3: Spritzr's weekly chart as at July 30, 2013_12:30pm (Source: quickcharts)
Conclusion
Based on good financial performance & still attractive valuation, Spritzr is a good stock for long-term investment. However, I expect short-term profit-taking activities to cap its upside at RM1.90-2.00.
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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