For QE30/6/2018, Spritzer's net profit dropped 1.5% q-o-q but rose 30% y-o-y to RM6.7 million while revenue rose 1.3% q-o-q or 6.5% y-o-y to RM84 million. The Group revenue increased due to increase in sales volume. Sales volume increased partly as a result of various sales campaigns carried out and also due to customers taking advantage of the special discount offered by the Group on bottled water.
Table: Spritzer's last 8 quarterly results
Spritzr' top-line has been rising steadily for the past 12 years but its bottom-line has formed plateau and moved sideways for the past 3 years.
Graph: Spritzer's last 49 quarterly results
Spritzer (closed at RM2.33 yesterday) is now trading at a PE of 15.7 times (based on last 4 quarters' EPS of 14.76 sen). At this PER, Spritzer is still deemed fairly valued for a consumer stock. Its dividend yield is on the low side at 2.4%.
Spritzr is in a long-term uptrend. We can use the 40-month SMA line as the proxy to determine its uptrend support.
Chart 1: Spritzer's monthly chart as at Aug 28, 2018 (Source: Malaysiastock.biz)
Spritzer has been moving sideways for the past 2.5 years. If it can break above the intermediate downtrend line, RR at RM2.45, it may continue on its prior uptrend.
Chart 2: Spritzer's weekly chart as at Aug 28, 2018 (Source: Malaysiastock.biz)
Despite satisfactory financial performance, fair valuation and positive long-term technical outlook, Spritzer is a good stock to consider for long-term investment.
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