Spritzer shares hit all-time high of RM1.84 after 3Q results beat

KUALA LUMPUR (Nov 28): Shares in Spritzer Bhd hit an all-time high of RM1.84 in Tuesday morning trade, following the release of its financial results for the third quarter ended Sept 30, 2023 (3QFY2023), which outperformed analysts’ estimates.

Spritzer opened at RM1.75, up 3.55% or six sen, from the previous day’s closing price of RM1.69. The counter then climbed 8.88% to a high of RM1.84, before paring its gains to RM1.78 at the time of writing.

The counter saw 655,300 shares traded. Its market capitalisation stood at RM568.38 million.

The counter has risen over 20% year-to-date and 28% in the past year.

Spritzer’s net profit jumped 48.5% to a record high of RM16.97 million for 3QFY2023, from RM11.43 million a year ago, as the company sold more bottles of drinking water amid recovery in tourism activities plus hot weather. Quarterly revenue rose 10.85% to RM132.56 million, from RM119.59 million a year ago.

This brought its net profit for the cumulative nine months of FY2023 to RM36.27 million, 41% higher than the RM25.7 million recorded in the same period a year earlier. Revenue grew 12.7% to RM365.67 million, from RM324.6 million the prior year.

“Spritzer reported a core Patanci (profit after tax and non-controlling interest) of RM36.3 million for 9MFY2023, excluding a one-time-off item of RM200,000. This surpassed both our and the consensus full-year FY2023 projections, constituting 87.1% of ours and 95.7% of the consensus,” said MIDF Investment Bank Bhd.

The research house raised its earnings forecasts for Spritzer upwards by 33.4% for FY2023 and 21.1% for FY2024, but maintained its FY2025 projection. This was after factoring in stronger sales volumes mainly driven by robust tourist activities as well as business events, and lower raw material cost due to reduced PET resin as well as the economies of scale on the back of stronger product demand.

Meanwhile, MIDF, which maintained its “buy” call on the stock, raised its target price (TP) to RM2.10 (from RM1.85), based on higher forecast earnings per share (EPS) of 19 sen for FY2024, from the previous estimate of 15.7 sen. This valuation is anchored to an updated price-earnings ratio (PER) of 11.1 times, closely aligning with the stock’s three-year historical PER.

“Going forward, we are upbeat about Spritzer’s FY2024 outlook, underpinned by i) its defensive business nature; ii) increased tourist movement and out-of-home activities, which may increase demand for bottled water; iii) rising business events and activities post-border reopening that raise demand for bottled water during the events; and iv) potential expansion into the Singapore market,” MIDF wrote in a note.

Spritzer’s performance for 9MFY2023 also surpassed Public Invest Research’s expectations, accounting for 103% of its full-year estimate. The research house raised its earnings estimates for Spritzer by 14%-35% for FY2023-FY2025, after lowering its cost assumptions.

“We expect Spritzer to post higher earnings going forward, underpinned by stronger bottled water demand and an increase in production volume, as the group is operating near its optimal capacity (from 1 billion to 1.2 billion litres per annum),” said the research house.

“We are optimistic about Spritzer’s future outlook, as we believe that the resumption of economic and tourism activities will continue to drive bottled water sales. As such, we upgrade our call on Spritzer from ‘neutral’ to ‘outperform’, with a higher TP of RM2.08, based on 13 times PER on FY2024 EPS,” it added.

Spritzer’s 3Q net profit hit record high, up 49%, driven by tourism activities and hot weather

OTHER NEWS

23 minutes ago

Austrian man stumbles upon ‘sensational’ mammoth fossils while renovating wine cellar

23 minutes ago

Aitana Bonmati: How Barcelona’s superstar is changing the game on and off the pitch

23 minutes ago

Marcus Rashford faces his most important moment with a shot at redemption

23 minutes ago

Why do Bayern Munich want Vincent Kompany? The relegated manager might make more sense than you think

23 minutes ago

China starts second day of war games around Taiwan to test ability to ‘seize power’

23 minutes ago

Tears, hugs as police apologise to stolen generation

23 minutes ago

Horoscopes and Lucky Numbers for today, Friday 24 May 2024

23 minutes ago

Romeo & Juliet review – Tom Holland enters to whoops as Francesca Amewudah-Rivers shows a steely cool

23 minutes ago

Chris Hemsworth receives his star on the Hollywood Walk of Fame

23 minutes ago

Venus Williams and Mary Fowler honoured with one-of-a kind Barbie dolls

26 minutes ago

2 people shot during California high school graduation ceremony

30 minutes ago

Energy bills fall by more than £120 as price cap tumbles by 7% from £1,690 to £1,568 from July 1

30 minutes ago

Video: Home and Away star Matt Evans reveals a beloved character will be killed off the soap series in a matter of days as he issues ominous warning

30 minutes ago

Video: Enormous turnout for Trump's rally in deep-blue Bronx is revealed... as hilarious clip emerges of ex-president telling drill rapper guests that he wants diamond dental grill

30 minutes ago

I am completely thrown by this 'bizarre' detail on train platforms around Australia: 'It's wrong on every level'

30 minutes ago

Love Island star Molly-Mae Hague is slammed for booking budget airline Ryanair for her sister's hens party - after splashing out on a private jet for her best friend's birthday

30 minutes ago

Chris Pratt proudly shares that daughter Lyla, three, can spell name of little sister Eloise while promoting The Garfield Movie on NBC talk show

31 minutes ago

Angel Reese Sends Charles Barkley Stern Message Over Caitlin Clark Comments

32 minutes ago

Tom Hanks Saved Forrest Gump By Personally Funding An All-Time Classic Scene

32 minutes ago

South African man causes scene at Chicken Licken in a video, Mzansi stunned

32 minutes ago

Heather Humphreys could cut welfare support for 8,000 Ukrainians to as little as €38.80 a week

32 minutes ago

I’m a Waspi woman – I was forced to sell my home because of pension age move

32 minutes ago

Analysis of sandwich baggie composition raises serious health concerns: 'There is not a safe level'

32 minutes ago

Blues' AFL injury toll prompts wide-ranging review

32 minutes ago

Teen to become first millennial saint after second miracle recognised

32 minutes ago

Biden hosts a state dinner for Kenya, with a cameo from Obama

32 minutes ago

Nvidia's 10-for-1 Stock Split Is Coming—What You Need To Know

32 minutes ago

USS Harder: Wreck of famed US Navy World War II sub found off the Philippines

33 minutes ago

European stocks set to follow global markets lower as interest rate outlook weighs on sentiment

35 minutes ago

Beyoncé and Big Freedia face lawsuit over allegations they used material from New Orleans group Da Showstoppaz for multiple tracks without crediting or compensating them

35 minutes ago

Sarah Jessica Parker turns heads in a studded turquoise dress while filming a night scene for Season 3 of And Just Like That...

35 minutes ago

Aussie shoppers bombarded with lies and manipulated in supermarket aisles over 'green' products, claims environmental campaigner

35 minutes ago

Home and Away star Matt Evans reveals a beloved character will be killed off the soap series in a matter of days as he issues ominous warning

35 minutes ago

Drunk driver Surinder Singh who tried to pin the blame for fatal Newcastle accident on his dead friend Jujhar Singh is jailed

37 minutes ago

Yokohama takes a 2-1 lead into the 2nd leg of the Asian Champions League final against Al-Ain

37 minutes ago

Since we’re reliving MW2, fans want a Campaign hero to return

37 minutes ago

The curious case of Emanuel Reynoso, MLS' most controversial player

37 minutes ago

Met Office Bank Holiday weather 'mixed bag' as London to be battered with '18 hours of rain' amid glorious sunshine

37 minutes ago

Battery train technology developed in North East goes into trials

38 minutes ago

Great Artesian Basin carbon capture project rejected

Kênh khám phá trải nghiệm của giới trẻ, thế giới du lịch