[%sgCr%]
Research by Public
Outperform - TP RM2.90

"Above Expectations"

Spritzer’s 2QFY24 headline net profit surged 64% YoY to RM19.9m, driven by the increase in bottled water sales from the manufacturing segment. After adjusting for non-core items, Spritzer’s core net profit came in at RM20.3m. Cumulative 1HFY24 core net profit of RM35.5m was above our and consensus estimates, accounting for 62% and 64% of full-year forecast, respectively. The discrepancy in our numbers was mainly due to the stronger-than-expected bottled water sales. We raise our forecast for FY24-26F by an average of 26%, as we factor in higher sales volume. We are optimistic on Spritzer’s earnings prospects, underpinned by robust demand for bottled water on recovery in economic and tourism activities. In addition, we foresee an uptick in Spritzer’s profit margins due to better economies of scale supported by the strengthening MYR. Therefore, we upgrade our call on Spritzer to Outperform, with a higher TP of RM2.90, based on 12x FY25F EPS (close to average 1-year forward PER).

Analyst:
Wong Ling Ling
[%zFvS%]

$KLSE-SPRITZER
Research by Public
Outperform - TP RM2.90

"Above Expectations"

Spritzer’s 2QFY24 headline net profit surged 64% YoY to RM19.9m, driven by the increase in bottled water sales from the manufacturing segment. After adjusting for non-core items, Spritzer’s core net profit came in at RM20.3m. Cumulative 1HFY24 core net profit of RM35.5m was above our and consensus estimates, accounting for 62% and 64% of full-year forecast, respectively. The discrepancy in our numbers was mainly due to the stronger-than-expected bottled water sales. We raise our forecast for FY24-26F by an average of 26%, as we factor in higher sales volume. We are optimistic on Spritzer’s earnings prospects, underpinned by robust demand for bottled water on recovery in economic and tourism activities. In addition, we foresee an uptick in Spritzer’s profit margins due to better economies of scale supported by the strengthening MYR. Therefore, we upgrade our call on Spritzer to Outperform, with a higher TP of RM2.90, based on 12x FY25F EPS (close to average 1-year forward PER).

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