Opportunity for investors to profit from Spritzer

PETALING JAYA: While Spritzer Bhd’s fundamentals remain solid, its valuation is stretched which presents an opportunity for investors to take profit on the stock, according to MBSB Research.

The research house downgraded its call for Spritzer to “sell” from “neutral” with an unchanged target price of RM2.54.

The research house said the management reiterated its strategic focus on capacity expansion, operational efficiency, and brand strengthening in an analyst briefing, as the group prepares for Visit Malaysia Year 2026 (VMY26).

“Operational momentum remained healthy following its strong third quarter (3Q) performance, with management highlighting margin support from softer raw material prices and continued mix improvement. Management also reaffirmed that the new Taiping, Perak production line is near completion.

While Spritzer’s fundamentals remained solid, its recent sharp share-price appreciation has limited its near-term upside, the research house said in a report yesterday.

MBSB Research said Spritzer’s near-term outlook remained underpinned by steady domestic demand for bottled water, supported by ongoing tourism activity and marketing efforts tied to VMY26.

The management highlighted ongoing national campaigns, collaborations with the Tourism, Arts and Culture Ministry for VMY26, and targeted product pushes in key tourist hubs such as Johor, Melaka, Penang and the Klang Valley.

“The group remains in a net cash position of RM16.5mil as of 3Q25, and capital expenditure for the year was notably lower at RM11mil, reflecting the completion of key installations,” MBSB Research said.

Margin improvement remained a central theme. MBSB Research said management reiterated that 3Q margin gains were driven by higher average selling prices, better product mix, and lower polyethylene terephthalate (PET) resin costs, supported by abundant global polymer supply, with virgin PET prices moderating to RM3 per kg to RM3.50 per kg.