Published: Monday September 9, 2013 MYT 12:00:00 AM The Star GEORGE TOWN: Despite a subdued forecast for the country’s economic growth, branded consumer goods manufacturers are expecting a strong year ahead.
The Malaysian Institute of Economic Research (MIER) had recently lowered its forecast for the country’s 2013 growth to 4.8% from 5.6% previously, and warned that growth might be lower if all the downside risks occurred.
However, NTPM Holdings Bhd and Spritzer Bhd expect growth in revenue and margins, riding on stable raw material prices and rising demand.
NTPM is projecting this year to perform better than 2012, driven by the contribution from its growing personal care products and better margins from its tissue paper sales.
Group managing director Lee See Jin said the personal care segment should generate over 30% of the group’s revenue for the fiscal year ending April next year (FY14), compared with 26% in FY12.
“We have recently started producing personal care products such as facial cotton on our own. This allows us to produce more cost effectively, control the quality of our products better, and ensure a continuous flow of supply,” he told StarBiz.
“Previously the manufacturing was outsourced.
“We are now producing about RM1.5mil worth of facial cotton products monthly, compared with about RM1.2mil per month last year.”
On its tissue paper business, Lee said due to the stable pulp paper prices and the drop in recycled paper cost, the group expected higher margins from the segment.
The price of recycled paper dropped about 7% to RM540 per tonne from RM580 a year ago, while the price of pulp paper is still maintained at about RM2,000 per tonne (for short-fibre pulp paper) and RM2,350 per tonne (for long-fibre pulp paper), more or less the same as six months earlier.
“The price of pulp paper has remained stable because of oversupply due to the reduced consumption from China,” Lee said.
Meanwhile, Spritzer is currently expanding its production output to 500 million litre per annum of bottled water from the current 400 million litre per annum to meet the rising demand of the group’s beverage products.
“We have recently replaced a production line in our Yong Peng mineral water plant in Johor.
“We also plan to upgrade an existing production line in our Taiping mineral water plant in the current financial year. We have also recently added a production shift in our Shah Alam plant.
“These upgrading works for the production facilities are scheduled for completion in May 2014, which will then raise the group’s total production capacity to about 500 million litres per annum.
“We will spend about RM20mil as capital expenditure for the fiscal year ending next May (FY14),” he said.
Lim said the group expected its sales of bottled water to grow further in FY14.
“The sales volume will grow, but in respect to margins, there will be erosions due to higher labour and fuel costs for FY14,” Lim added.
This is a very 'strange' and yet strong uptrend counter. Not much people are interested in it. Not even the Security Analysts hence its low trading volume. Since Dec 2012, it has going on the uptrend with 0.70 rise until now. Very steady.Their latest financing report is good with 4 cents dividend given, There will be another round of dividend before year end. I think it will hit 1.80 before November. If it continue its trend, it might hit 2.00 by year end.
My prediction of hitting 1.80 before November is one day off. Uptrend is still intact.
Based on its historical chart, a side trading trend which followed by a wide candle will always push the price higher, like what it is happening today. If it doesn't pullback next week, expect the counter to trade between 1.85 to 1.90 in 1 week's time. This is good news for short term trading. TP by 2014 is 2.00. I expect the final dividend is to be paid in Dec/Jan.
A few facts :
1) Spritzer has been posting increasing revenue in the past 3 years. Both FA and TA is good.
2) One director has been disposing his shares in the close/open market from 25/10 to 31/10. Luckily, it's not a collective of directors doing that. The reason - free for you to speculate.
3) Before its first interim dividend ex-date, a few directors have been acquiring the shares in the open market and some are even exercising their ESOS from 17/10 to 18/10. Are they merely wanted to take advantage of the coming dividend or expecting a higher price on the stock, I do not know.
As I said before, this is a very 'strange' counter. Its market visibility is low and its trading volume is very little and hence, the price can be easily manipulated. Take today for example. The counter open at 1.72 and suddenly jumped to 1.80 within 1 hour with price gap in between. Supply and demand cannot be applied in this stock, but one thing is sure : Uptrend is still intact.
The chart shows a bit saucer like pattern. There's a possibility of hitting 1.95 maybe sooner than expected but if that happen, do expect a little consolidation.
Bottled water manufacturer Spritzer Bhd saw its earnings tumble 34.4% to RM3.37mil in the second quarter ending Nov 11, 2013, from RM5.13mil in the same period a year earlier.
This was despite the company’s revenue improving 18.3% to RM55.19mil from RM46.66mil. As it were, cost of sales and other operating expenses increased quarter-on-quarter to RM49.78mil from RM39.44mil.
Earnings per share was lower at 2.54 sen, from 3.93 sen previously.
stockcrazy, coming quarter expected better results due to water rationing. Dont think its sustainable after situation normalise. Last quarter results mentioned about spiked in operating costs.
Highlights / Stock Picks of the Day Spritzer Bhd (SPRITZR) – Not Rated SPRITZR was in the limelight recently as they reported a strong set of 3Q14 results. On last Monday, SPRITZR rose 11 sen (+5.82%) to close at RM2.00 with a bullish ‘Marubozu’ candlestick. Chart-wise, share share price has recently retreated to its ‘resistance-turned-support’ level of RM1.72. Key indicators like Stochastic and RSI are currently positive, suggesting that buying momentum is pilling up. Thus, we believe that SPRITZR could stage an interesting ‘rebound play’ from its support level. Traders who buy into the stock could look to take profit 3 bids below the ‘Double Bottom’-alike chart pattern measurement objective of RM2.24 at RM2.21. Meanwhile, we advise traders to employ a stop-loss 3 bids below its support level of RM1.90 at RM1.87. Outlook Bullish Key Resistance level RM2.05 (R1) RM2.16 (R2) RM2.32 (R3) Key Support level RM1.90 (S1) RM1.83 (S2) RM1.77 (S3) Strategy Not Rated Current Price RM2.00
About the stock: Name : SPRITZER Bhd Bursa Code : SPRITZR CAT Code : 7103 Market Cap : 267.3 52 Week High/Low : 2.13/1.31 3-m Avg. Daily Vol. : 158,538.1 Free Float (%) : 46.6% Beta vs. KLCI : 1.3
SPRITZR was in the limelight recently as they reported a strong set of 3Q14 results. On last Monday, SPRITZR rose 11 sen (+5.82%) to close at RM2.00 with a bullish ‘Marubozu’ candlestick. Chart-wise, share share price has recently retreated to its ‘resistance-turned-support’ level of RM1.72. Key indicators like Stochastic and RSI are currently positive, suggesting that buying momentum is pilling up. Thus, we believe that SPRITZR could stage an interesting ‘rebound play’ from its support level. Traders who buy into the stock could look to take profit 3 bids below the ‘Double Bottom’-alike chart pattern measurement objective of RM2.24 at RM2.21. Meanwhile, we advise traders to employ a stop-loss 3 bids below its support level of RM1.90 at RM1.87.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Hafiz_444
301 posts
Posted by Hafiz_444 > 2013-07-31 16:56 | Report Abuse
omg..really disappointed on this stock