Friday, May 23, 2014

SPRITZER BHD VALUE EVALUATION

Being the sole listed drinking water company in Malaysia, Spritzer has always being thriving in water business. Although there are competitors in and out of the business, Spritzer is standing firm on its feet all these years. Focusing on the market specifically for natural drinking water with the least flavouring, Spritzer did a pretty good job differentiating themselves with the greenish and bluish labelling which enables easy recognition. Despite establishing a strong branding within Malaysia, Spritzer is not contained by their own achievements. Instead, they go all out evaluating different kind of trends and expanding their market shares by identifying those needs such as water dispenser and vitamin water which is highly sought by modern families demanding equipment to ease their house works burden and at the same time being able to maintain their health in shape. As for their business nature, Spritzer don’t need much research and development to survive in the market. With only one water reservoir, all they need is to improve the extraction of mineral water. However, this doesn’t apply to their recently launched water dispenser product.


When it comes to consumer side, pricing is a major factor to be taken in consideration whenever purchase is being made. With guaranteed quality, Spritzer is of course priced higher than most of its competitors in the market in terms of drinking and mineral water. Furthermore, water purifying systems are made for easy maintenance and repairmen nowadays. Expansion of the use of system will directly damage Spritzer newly launched water dispenser. (When you have a trusted water dispenser or purifier, why would you buy the liquid behind the plastic bottle anyway? No offense.) Finally, I notice that there is only one water reserve which is able to provide raw water for the company. I mean like what if something happens because it’s actually the company backbone? (Touch wood)
Spritzer 10 Year's Financial Performance

According to the table above, operating cash flows is growing at an annual rate of 5% for the past 10 years. Looking into its efficiency ratio, both ratios performance are moderate but not superior. Personally, I hope to uncover some of company with higher efficiency, filtered out of my list. 
Stock: SPRITZR Code: 7103

No comments :

Post a Comment