1 Line in Taiping and 1 Line in Yong Peng has commenced production. New ASRS seems to be more efficient too during the plant visit. Looking forward for stronger performance in overseas aspect.
Seems like the new ASRS is a relatively timely addition in regards to warehousing vehicles, reduces the need to depend on Diesel vehicles. But of course large amount of logistics still depends on Diesel which I expect will eat into the margins for Spritzer since the bulk of the costs comes from logistics.
Would recommend to hold, and wait for opportunity to accumulate on the new lines are pushed to optimal production.
Prospects for Spritzer? - increased production output to 1.2 B litres (volume & capacity) - higher pricing of products, more demand for sparkling water - investment of rm80M for new production plant of sparkling water - lower PET resin prices or raw material costs - higher tourist arrivals in Malaysia 2024 - Hot weather in some states - higher demand for mineral water, improved export sales, higher ASP - double digit growth in the past 2 quarters YoY - cash flow positive - current PE is 14.5, fair value at PE 16, Div Yield 2.1% (F&N is PE 19, Div yield 2.5%)
Spritzer's Share Buybacks and Dividend-in-specie? This iconic move of more share buybacks and several dividend-in-specie as a follow-through can keep the shareholders fully invested and may be a good shark-repellant.
This will also project Spritzer as a resilient stock rather than as a income stock, ironing out the kinks in the stock prices and volatile currencies.
Awarding cash dividend once a year to shareholders is just so 'old school'.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 2909 views | 2 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
speakup
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Posted by speakup > 2023-08-06 08:10 | Report Abuse
in Johor, Ranhill Saj supply water, Spritzer bottle the water.