SPRITZER Bhd's 3Q23 core net profit (CNP) jumped 49.3% YoY to RM17.1m, mainly attributable to the higher sales volume and lower operating cost, bringing the YTD core net profit to RM36.3m.
Cumulative 9MFY23 earnings were above our and consensus estimates, accounting for 103% and 96% respectively. The discrepancy in our forecast was mainly due to the lower than expected operating costs.
Therefore, we raise our earnings estimates by 14%-35% for FY23-FY25F, as we lower our cost assumptions. We are optimistic on Spritzer's future outlook as we believe that the resumption in economic and tourism activities will continue to drive bottled water sales. As such, we upgrade our call on Spritzer from 'Neutral' to 'Outperform', with a higher TP of RM2.08 based on 13x PER FY24 EPS.
Its 3Q23 revenue rose 10.8% YoY to RM132.6m, due to an increase in the sales volume of bottled water from the manufacturing segment.
Additionally, the increase in the average selling prices of its bottled water has contributed towards this boost in revenue.
Its 3Q23 CNP grew 49.3% YoY to RM17.1m, on lower raw material costs, greater economies of scale, as well as better product mix. We understand the group is operating at 70% utilization rate, which is close to its optimal capacity. As a result, Spritzer saw an expansion in its operating profit margin, increasing by 7ppts to 17.7% (3QFY23: 10.7%). Spritzer's China operations recorded narrower losses of RM0.3m due to lower operating expenses.
We expect Spritzer to post higher earnings going forward, underpinned by stronger bottled water demand and an increase in production volume as the group is operating near its optimal capacity (from 1b to 1.2b litres per annum).
The stronger bottled water demand is mainly premised on recovery in economic activities and return of international tourists especially given the recent announcement on visa free travel for visitors from China and India.
Meanwhile, we understand that Spritzer is looking to grow its presence in Singapore, which we believe it will be fulfilled by the new production line and warehouse in Yong Peng.
SPRITZER Bhd的23年第三季度核心淨利潤（CNP）同比增長49.3％，至1710萬令吉，這主要歸因於銷售量增加和運營成本降低，使年初至今的核心淨利潤達到3630萬令吉。
9MFY23 的累計收益高於我們的預期和共識預期，分別佔103％和96％。我們預測的差異主要是由於運營成本低於預期。
因此，隨着成本假設的降低，我們將 FY23-FY25F 的收益預期提高了14％-35％。我們對Spritzer的未來前景持樂觀態度，因爲我們相信經濟和旅遊活動的恢復將繼續推動瓶裝水的銷售。因此，我們將對Spritzer的看漲從 “中性” 上調至 “跑贏大盤”，根據24財年每股收益的13倍，目標更高爲2.08令吉。
其23年第三季度收入同比增長10.8％至1.326億令吉，這是由於製造部門瓶裝水的銷售量增加。
此外，其瓶裝水平均銷售價格的上漲爲收入的增加做出了貢獻。
由於原材料成本降低，規模經濟增強，產品組合更好，其23年第三季度CNP同比增長49.3％，達到1710萬令吉。據我們了解，該集團的利用率爲70％，接近其最佳產能。結果，Spritzer的營業利潤率有所提高，增長了7個百分點至17.7％（3QFY23：10.7％）。由於運營費用降低，Spritzer的中國業務虧損較小，爲30萬令吉。
我們預計，Spritzer未來將實現更高的收益，這得益於瓶裝水需求的強勁以及該集團接近最佳產能（從每年10億升到12億升）的產量增加。
瓶裝水需求強勁的主要前提是經濟活動的復甦和國際遊客的回歸，特別是考慮到最近宣佈對來自中國和印度的遊客免簽證旅行。
同時，我們了解Spritzer希望擴大其在新加坡的影響力，我們相信這將由位於永彭的新生產線和倉庫來實現。
