Stock With Momentum: Spritzer

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This article first appeared in The Edge Financial Daily, on January 22, 2016.


Stock With Momentum: Spritzer Bhd (+ve)

SHARES of Spritzer (Fundamental: 1.4/3, Valuation: 0.8/3) rose 1.3% to close at RM2.38. The trading volume was relatively high with 417,400 shares changing hands compared to its 200-day average of 73,058 shares. Spritzer last featured in “Stocks with Momentum” on Feb 27, 2015 and had risen by 14.4% ever since. The company is expected to announce its 2QFYMay2016 results by next Friday.

For 1QFY2016, revenue increased by 7.0% to RM66.7 million due to increased sales volume and better average selling prices. Profit also grew by 7.0% to RM9.4 million, contributed by increased sales revenue and reduction in packaging material costs.

The group is involved in manufacturing and distribution of natural mineral water, sparkling natural mineral water, distilled drinking water, carbonated fruit flavoured drink, non-carbonated fruit flavoured drink, functional drink, toothbrushes, preforms and packaging bottles.

The stock trades at a trailing PE of 14.71 times and 1.54 times book value.