Thursday, April 21, 2011

Spritzer - Worth a look?


Spritzer is rather a small cap company, but i think their growth story is worth to look at. Their latest sales recorded another growth, however earning is slightly lower due to higher capex for new plant near Shah Alam. No need to explain their product range as pretty well known. I do hope they will improve their market distribution since its hard to find their other product (except for the mineral water). Been to Taiping last week, seems like they are doing well at their hometown. At RM0.99 and PE10.7, i dont find the price is attractive, and the balance sheet also rather boring with higher gearing due to their expansion plan. I will consider if ~ RM0.80. Going forward, with new plant i think they can earn due to better economic scale, competitive price point and consistence growth story...slow but steady.



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