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Research by Public
Neutral – TP RM2.50

“Robust Demand"

Spritzer’s 1QFY24 headline net profit jumped 116.9% YoY to RM15.5m, mainly attributable to an increase in sales volume and higher average selling price (ASP) as well as lower tax rate. After adjusting for non-core items, Spritzer’s core net profit came in at RM15.2m. Although Spritzer’s 1QFY24 earnings were in-line with expectations at 29% of our full-year estimates, we are raising our forecast for FY24-26F by an average of 14%, mainly to account for stronger bottled water demand. Going forward, we believe that Spritzer will continue to benefit from higher demand for bottled water given the recovery in economic and tourism activities as well as rising consumer health consciousness. We maintain our Neutral call on Spritzer with a higher TP of RM2.50, based on 13x FY25F EPS, as we rollover our valuation base year to FY25F.

Analyst:
Wong Ling Ling
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$KLSE-SPRITZER
Research by Public
Neutral – TP RM2.50

“Robust Demand"

Spritzer’s 1QFY24 headline net profit jumped 116.9% YoY to RM15.5m, mainly attributable to an increase in sales volume and higher average selling price (ASP) as well as lower tax rate. After adjusting for non-core items, Spritzer’s core net profit came in at RM15.2m. Although Spritzer’s 1QFY24 earnings were in-line with expectations at 29% of our full-year estimates, we are raising our forecast for FY24-26F by an average of 14%, mainly to account for stronger bottled water demand. Going forward, we believe that Spritzer will continue to benefit from higher demand for bottled water given the recovery in economic and tourism activities as well as rising consumer health consciousness. We maintain our Neutral call on Spritzer with a higher TP of RM2.50, based on 13x FY25F EPS, as we rollover our valuation base year to FY25F.

Analyst:
Wong Ling Ling
wong.lingling@publicinvestbank.com.my