For QE31/8/2013, Spritzr's net profit dropped 12% q-o-q but rose 66% y-o-y to RM5.2 million while revenue was rose 10% q-o-q or 17% y-o-y to RM56 million. The company attributed 10% q-o-q increase in net profit to increased revenue, which is the result of increase in sales volume of bottled water products.
Table: Spritzr's last 8 quarterly results
Chart 1: Spritzr's last 29 quarterly results
Valuation
Spritzr (closed at RM1.71 at the end of morning session) is now trading at a PE of 10.6 times (based on last 4 quarters' EPS of 16.2 sen). At this PE multiple, Spritzr is still deemed attractive for a consumer stock.
Technical Outlook
Spritzr dropped back to test its uptrend line in late August. It made a low of RM1.31. Its immediate support is at the horizontal line at RM1.50 & the immediate resistance is at RM1.80.
Chart 2: Spritzr's weekly chart as at Oct 14, 2013_12:30pm (Source: quickcharts)
Conclusion
Based on good financial performance & still attractive valuation, Spritzr is a good stock for long-term investment. I rate the stock a HOLD.
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.
May I know your outlook on "Oka". A small, forgotten small cap company.
ReplyDeleteHi InvestinKL
ReplyDeleteOKA has a slow & steady growth track record. Its net profit grew to RM5.7 mil for FYE31/3/2013 from RM4.9 mil previously. At RM0.72, it is now trading at a PE of 7 times. It has an attractive dividend yield of 5%.
Chartwise , it broke above the strong horizontal line at RM0.60-0.61. It is in an uptrend line with support at RM0.70.
I would rate it a HOLD.
Thanks Alex*
ReplyDelete