MBSB Research said it remains positive on Spritzer’s near-term prospects.
PETALING JAYA: Analysts are positive on Spritzer Bhd
as its second quarter ended June 30, 2025 (2Q25) results came in above expectations for many research houses, on the back of steady bottled water sales, firmer average selling prices and lower raw material costs.
For 2Q25, the natural mineral water distributor clocked in a higher revenue of RM164.4mil, and a net profit of RM22.72mil, led by the manufacturing segment, which was likely to be from a more favourable sales mix.
In a report, MBSB Research said cumulatively, Spritzer’s first half of financial year 2025’s revenue increased 11.1% year-on-year (y-o-y) to RM312.7mil, driven by steady growth in the manufacturing segment (plus 12% y-o-y), while the trading segment contracted slightly (minus 3.2% y-o-y) and other contributions remained minimal.
“We remain positive on Spritzer’s near-term prospects, anchored by resilient domestic demand, recovering tourism flows, and rising out-of-home consumption amid persistently hot weather conditions,” it said.
The research house added further expansion into other strategic markets such as Singapore, and deeper penetration into the hospital, restaurant, and cafe, or Horeca, segment, alongside a stronger premium product mix, is expected to reinforce its market leadership.
In addition to that, the ongoing downtrend in polyethylene terephthalate (PET) resin prices should provide further margin relief, while sustainability initiatives – including greater adoption of recycled PET bottles – strengthen brand positioning.
“At the same time, automation and process optimisation will continue to drive cost efficiency and margin stability. We upgrade to buy with a higher target price of RM2.13, subsequently raising our financial year 2025 (FY25) to FY27 earnings forecasts by 10%, 10% and 12%.
”Meanwhile, BIMB Research also expressed optimism on the stock, as it reaffirmed Spritzer’s strong outlook.
“Prospectively, we remain optimistic on Spritzer’s outlook, supported by stable bottled water demand driven by hot weather conditions and robust tourism activities, including the upcoming Visit Malaysia 2026,” it said.
The research house said it likes Spritzer’s unique selling point of promoting high silica content in its flagship mineral water brand, coupled with an extensive product portfolio under different names such as Summer, Cactus and Desa, enabling them to capture a larger market share.
“Spritzer is expected to continue benefiting from lower production costs, particularly the low prices of PET resin.
“We upgrade to a buy call from hold, with a target price of RM2, and revise upwards our earnings forecast for FY25 to FY27 by 15%, 7% and 3% to account for the lower-than-expected input costs.”
At the time of writing, Spritzer’s share price was RM1.77, with a market cap of RM1.13bil.
In a statement on its latest financial results, Spritzer said the economic outlook for Malaysia remains positive.
“Growth continues to rest on a solid foundation, supported by resilient domestic demand, steady exports of electrical and electronics products, and a diversified exports base.
“While fundamentals provide stability, through infrastructure investment, household income growth, and tourism momentum from Malaysia’s Asean Chairmanship and the upcoming Visit Malaysia 2026 campaign, external headwinds persist.”
