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Spritzer springs up in largest one-day share price rise in five months

Spritzer springs up in largest one-day share price rise in five months
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KUALA LUMPUR (Oct 1): Spritzer Bhd logged its largest one-day share price rise in over five months since April 2021 as the bottled water producer rose as much as nine sen or 4.43% to RM2.12 on Friday.

At the 12.30pm break on Bursa Malaysia, the stock had pared gains at RM2.05, with 5,800 shares traded.

The counter's gain of nine sen to RM2.12 is possibly its biggest one-day rise in over five months since April 23, 2021, when its share price closed up 10 sen at RM2.14. 

The reason for the sudden surge in Spritzer’s share price earlier on Friday could not be immediately ascertained as at the time of writing.

The company's latest Bursa filing was on Aug 25, 2021, when the company reported that its net profit more than doubled to RM4.08 million for the second quarter ended June 30, 2021 (2QFY21), from RM2.02 million a year earlier, as revenue rose to RM75.03 million from RM54.42 million.

Cumulative net profit for the first half ended June 30, 2021 (1HFY21) was, however, lower at RM10.14 million versus RM10.8 million a year earlier despite revenue growing to RM151.08 million from RM147.22 million, according to Spritzer.

The company's latest-reported net assets per share stood at RM2.13, it said.

MIDF Amanah Investment Bank Bhd analyst Ng Bei Shan wrote In a note dated Aug 26, 2021 that MIDF maintained its "buy" call for Spritzer shares with an unchanged target price (TP) of RM2.63. 

"Despite the near-term challenges, we believe that demand for bottled water is likely to increase in tandem with the recovery in economic activities as the [Covid-19] pandemic eases. We believe that Spritzer will benefit from a recovery in consumption given its market leading position in the bottled drinking water segment,” Ng said.

Spritzer’s intraday-high share price of RM2.12 so far on Friday valued the company at about RM445.14 million based on its 209.97 million issued shares.

Year to date (YTD), Spritzer’s share price has risen to current levels from the closing price of RM1.95 on Jan 4, 2021.

Chong Jin Hun